U.S. oil boom to help meet new global demand

The International Energy Agency (IEA) has predicted that the U.S. shale oil will help meet most of the world's new oil demand in the next five years, even if the global economy picks up steam, leaving the need for OPEC crude barely changed from today's levels.

The prediction by the International Energy Agency (IEA) came in its closely watched semi-annual report, which analyses mid-term global oil supply and demand trends.

It said it expected global oil demand to rise 8 percent between 2012 and 2018 to reach 96.7 million barrels per day (bpd) based on a fairly optimistic International Monetary Fund's global economic growth assumption of between 3.0 and 4.5 percent a year during the period.That incremental demand will be mainly met by non-OPEC production, which will rise by more than 10 percent between 2012 and 2018 to 59.31 million bpd, the IEA said, increasing its estimate of non-OPEC supply in 2017 by 1 million bpd versus its previous report in October 2012. That will leave OPEC, which had been long seen as the last resort for the world to meet rising demand, with output fluctuating around the current levels of 30 million bpd for the next five years.

Brent drops below $99; demand worries persist

Brent crude fell below $99 per barrel weighed by the prospect of sluggish fuel demand in top consumers in the United States and China and in addition to rising stockpiles of U.S. crude.

More bleak economic news came courtesy of the International Monetary Fund (IMF), which trimmed projections for this year and next - implying limited upside for oil demand growth.

The North Sea benchmark has lost nearly 6 percent over the past five sessions in a wider commodities rout triggered by data showing growth in China, the world's second largest oil burner, had slowed unexpectedly in the first three months of 2013.

The head of the International Energy Agency, Maria van der Hoeven, said the oil price decline was proof that the market was adequately supplied.

Brent crude shed $1 to $98.91 after sinking earlier to $98.80, the weakest since July 2012. U.S. crude slipped $1.29 to $88.43.

Nigeria Loses $7bn Annually to Oil Theft

The International Energy Agency (IEA) has said that the Federal Government as well as local and international oil companies (IOCs) operating in Nigeria lose an estimated $7 billion (N1.05 trillion) to oil theft annually.

In its report, the 28-member agency said Nigeria’s crude oil production had dropped to the lowest level for more than two years in October 2012, due to the recent flooding in some parts of the country and widespread theft of crude oil. The IEA report noted that Nigeria’s crude oil output fell to 1.95 million barrels per day (mnbpd) in October, after production in recent months ranged between 2 mnbpd and 2.5 mnbpd. According to the report, the drop from September 2012 to October 2012 was around 110,000 barrels per day, with the country’s output falling to “the lowest level in around two-and-a-half years”.

The report however stated that by early November, production levels were recovering, with export loading schedules showing increased volumes for December.

U.S. to become World's biggest oil producer by 2017

The International Energy Agency (IEA) has forecast that the U.S. will become the world's biggest oil producer and gas producer in the coming years. The energy agency said the U.S. will become the biggest oil producer in the world by 2017, bumping Saudi Arabia from the top spot. The agency had formerly predicted Saudi Arabia would hold the title until 2035.

The IEA noted high world prices and new technologies in the U.S. oil and gas production industries are driving the rebound in oil and gas production. It forecast U.S. oil production will rise to 10 million barrels per day by 2015 and 11.1 million bpd in 2020.

The IEA also predicted that the U.S. will overtake Russia as the largest gas producer by 2015.

Iran's oil exports steady despite sanctions – Iran OPEC Governor

Iran’s OPEC Governor Mohammad-Ali Khatibi has said the oil exports of Iran have remained steady in recent months despite sanctions. The International Energy Agency (IEA) had earlier said in a report that Iran's oil exports fell to 860,000 barrels per day (bpd) in September. The figure was 2.2 million bpd in December 2011.

Dismissing the IEA report, Khatibi said Iran's oil exports are the same as previous months and the situation is stable.  Khatibi denied that Iran's oil buyers are limited to few countries. Khatibi, who is also the director of the National Iranian Oil Company, said Iran's oil exports are at their normal level and are unaffected by Western embargoes.

The UN Security Council imposed four rounds of sanctions on Iran between 2006 and 2010 over its refusal to halt its nuclear enrichment program, which Western countries suspect could be used to develop nuclear weapons. The U.S and European Union have imposed and expanded sanctions of their own over the years despite Tehran's insistence on the peaceful nature of its nuclear program.

The EU imposed an oil embargo on Tehran on July 1, and is mulling over another round of sanctions on Iran's natural gas exports to the block.