IEA Cuts Oil Production Forecast

The International Energy Agency cut the estimate of crude oil production from OPEC countries by 300,000 barrels a day, with consumption increasing by 230,000 barrels a day, less than forecast last month. Oil output from non-OPEC countries, however, is expected to expand at a faster pace than the IEA predicted last month. IEA also warned that production rising faster than demand could strain some nations' ability to store oil by the middle of next year. OPEC will need to pump an average of 28.9 million barrels a day in 2015 according to the IEA, 1.4 million less than produced last month and below the 30-million-barrel target agreed on November 27. Oil futures are lower on the news, with January WTI futures trading down $0.85 at $59.10 after briefly trading below the $59 level.