Oil demand set to ease in 2017, non-OPEC countries seen increasing production: IEA report
http://www.cnbc.com/2017/03/15/oil-demand-set-to-ease-in-2017-non-opec-countries-seen-increasing-production-iea-report.html
Demand growth for oil is expected to drop
As there is not much demand for oil, the International Energy Agency decided to cut their production and that way sell it more expensive. “Demand growth for oil is expected to drop. Oil-producing cartel cut their production and agreed to reduce production to ensure prices would go up.”
Why did the market shifted?
There is a shift in demand.
There is a decrease in demand because there was a change in consumer expectations because oil producers thought that people were going to consume but no, therefore oil producers decided to cut off their production to rise prices. In conclusion: Demand for oil decreased, therefore there was more quantity which need to be given at a lower price BUT because the oil industry didn't want to lose money, they decided to cut off production so there was less quantity to then increase price.
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