Crude supplies fall as cuts start to bite

Supplies fell to 94.1 million b/d in January, data from the International Energy Agency (IEA) showed

Global crude supplies fell by 235,000 barrels a day in January to 94.1 million b/d on lower Opec and non-Opec production, data from the International Energy Agency (IEA) showed. Demand continues to remain tepid. Cuts in capital expenditures have lowered projected 2015 non-Opec supply growth to 0.8m b/d. In its latest monthly report, the IEA lowered its forecast for US oil production in 2015 by 200,000 b/d, at an average 12.4m b/d, with most of the cuts in the second-half of the year. Investment cuts in US light, tight oil, while only making up a portion of the industry’s overall upstream budget cuts, will be among the first to be felt, thanks to their short lead time and treadmill-like spend