Stocks Drop At Open Following Mixed Data; IEA Report Shows Weaker Global Demand For Crude

B7NRRE Silhouette of oil platform in sea against moody sky at sunset

U.S. stocks are moving lower at the open on Thursday following some mixed economic data released this morning.

A new government report released today shows that consumer prices rose in March.

The consumer price index rose 0.1 percent in March after dropping 0.2 percent in February, led by a 0.9 percent increase in energy prices, according to a new report today from the Bureau of Labor Statistics.

Core CPI, which removes energy and food costs, rose 0.1 percent in March.

IEA Report Shows Weaker Global Demand For Crude Oil

The International Energy Agency (IEA) reported today that growth in global oil demand will ease to around 1.2 million barrels per day in 2016, below the expansion of 1.8 million barrels a day in 2015, the April IEA Oil Market Report (OMR) states.

The April report cited “notable decelerations taking hold across China, the United States and much of Europe.”

First quarter 2016 preliminary data already confirms that this is already occurring, with year-on-year growth down to 1.2 million barrels a day, after gains of 1.4 million barrels a day in the final quarter of 2015 and 2.3 million barrels a day in the prior quarter.

Global oil supplies fell by 0.3 million barrels a day in March to 96.1 million barrels a day, with annual gains shrinking to 0.2 million barrels a day, from 1.7 million barrels a day a month earlier and 2.7 million a day a year earlier.

The outlook for non-OPEC production is mostly unchanged since the report last month at 57 million barrels a day which is 710, 000 barrels per day below the 2015 average.

The report shows OPEC crude oil production dropped by 90 kb/d in March to 32.47 mb/d after ongoing outages in Nigeria, the United Arab Emirates and Iraq more than offset a further increase from Iran and higher flows from Angola.

Supply from Saudi Arabia dropped in March but remained near 10.2 million barrels a day.

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