Energy-related companies, Oasis Petroleum Inc. (NYSE:OAS), Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR), and Seadrill Ltd (NYSE:SDRL) are down by 8%, 5.8%, and 7.7%, respectively, after the International Energy Agency published a softer-than-anticipated outlook on crude demand in the near term. More specifically, the IEA, which advises major nations on energy policy, said:
“Our forecast in this month’s report suggests that this supply-demand dynamic may not change significantly in the coming months. As a result, supply will continue to outpace demand at least through the first half of next year. As for the market’s return to balance — it looks like we may have to wait a while longer.”
One reason for the potentially longer wait for balance is that demand growth from China and India has been weaker than expected. In terms of expectations, the agency cut its 2016 demand growth estimate to 1.3 million barrels per day, down from the previous 1.4 million barrels per day. However, the IEA did maintain its 2017 demand growth estimate of 1.2 million barrels per day.
In terms of individual holdings, John Horseman‘s Horseman Capital Management established a new stake of 7.6 million shares in Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR) at the end of June. Overall, 23 funds tracked by us held shares of Petrobras heading into the second quarter, while 17 and 33 funds were long Seadrill Ltd (NYSE:SDRL) and Oasis Petroleum Inc. (NYSE:OAS), respectively.