NEW YORK (DTN) -- New York Mercantile Exchange oil futures remained near their lows for the session Monday after a report by the Organization of Petroleum Exporting Countries left global demand expectations for 2016 unchanged from February while raising 2015 supply estimates for non-OPEC producers.
OPEC's Monthly Oil Market Report for March released at 11:00 a.m. EDT raised year-on-year supply growth in 2015 by non-OPEC by 100,000 bpd to 59.09 million bpd for an annualized growth rate of 1.42 million bpd. The report says non-OPEC supply for 2016 is expected to decline by 700,000 bpd, unchanged from the forecast published last month.
The monthly report maintained its outlook for annual global oil demand growth for this year at 1.25 million bpd for a 2016 consumption rate of 94.23 million bpd.
At 11:00 a.m. EDT, NYMEX April West Texas Intermediate crude futures fell $1.67 to $36.83 bbl, near a three-session low of $36.69. ICE May Brent crude futures trade fell $1.18 to $39.21 bbl, near a one-week low of $38.82.
In products trade, NYMEX April ULSD futures eased 2.82cts to $1.1898 gallon, off a one-week low of $1.1715. April RBOB futures dropped 2.53cts to $1.4190 gallon, off a three-session low of $1.4040.
The oil complex began its retreat overnight after Iran's oil minister Bijan Zaganeh said on Sunday that Tehran wouldn't join a crude oil output freeze plan designed last month by Russia and Saudi Arabia until its own output recovers to 4.0 million bpd. Iran's comment dashed any hope of a deal that has boosted oil prices in recent weeks, analysts said.
An upturn in the value of the U.S. dollar and short-term technical pressure also pressed NYMEX oil futures lower.
Oil futures rose on Friday after the International Energy Agency revised down its outlook for production this year for nonmembers of OPEC, and said oil prices might have bottomed.
George Orwel, 1.718.522.3969, firstname.lastname@example.org, www.schneider-electric.com. (c) 2016 Schneider Electric. All rights reserved.
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