Correction to Oil Markets Articles From Thursday and Friday

By Jenny W. Hsu Features Dow Jones Newswires

Crude futures edged lower in Asia on Friday, but the market mood remained generally upbeat after the International Energy Agency a day earlier boosted its 2017 demand-growth forecast.

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As such, the world's top energy watchdog sees global supplies falling 700,000 barrels a day. But it cautioned that the market should still "wait a little longer to confirm if the process of rebalancing has actually started."

Supportive of the IEA's latest view is China's still-robust thirst for foreign crude. In the first half of 2017, it imported an average 8.6 million barrels a day, 18% more than the start of last year. The country has become the world's leading energy importer, followed by the U.S.

China market watchers say the uptrend should persist as the government aims to expand its strategic petroleum reserve. Meanwhile, refineries there are eager to fill up their storage while oil is still cheap. Moreover, all this comes at a time when China's domestic production is declining fast as fields and investments dry up.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in August recently traded down 7 cents at $46.01 a barrel in the Globex electronic session. September Brent crude on London's ICE Futures exchange also fell 7 cents, to $48.35. Both have gained nearly 4% this week.

"It is hard to draw a conclusion that the bull market is back, but recent trends suggests the market is tightening--even though at a slower pace than previously thought," said Grace Liu, the head of petrochemical research at Guotai Junnan.

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A potential market mover later Friday will be the weekly U.S. rig-count data from Baker Hughes. The report is widely used to gauge future production.

There is a growing view that even though U.S. output could hit 10 million barrels a day by 2018, room for growth is limited and production will soon peak, said Li Li, the head of research at ICIS China. Unless demand growth sees a significant jump the next few years, she said softening margins will deter U.S. producers from expanding further.

Refined-product prices were little changed in Asia. Nymex August reformulated gasoline blendstock and diesel each rose 0.1% to $1.527 and $1.4924 a gallon, respectively, while July ICE gasoil eased 0.2% to $442.50 a metric ton.

Write to Jenny W. Hsu at jenny.hsu@wsj.com

Crude futures edged lower in Asia on Friday, but the market mood remained generally upbeat after the International Energy Agency a day earlier boosted its 2017 demand-growth forecast.

As such, the world's top energy watchdog sees global supplies falling 700,000 barrels a day. But it cautioned that the market should still "wait a little longer to confirm if the process of rebalancing has actually started."

Supportive of the IEA's latest view is China's still-robust thirst for foreign crude. In the first half of 2017, it imported an average 8.6 million barrels a day, 18% more than the start of last year. The country has become the world's leading energy importer, followed by the U.S.

China market watchers say the uptrend should persist as the government aims to expand its strategic petroleum reserve. Meanwhile, refineries there are eager to fill up their storage while oil is still cheap. Moreover, all this comes at a time when China's domestic production is declining fast as fields and investments dry up.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in August recently traded down 7 cents at $46.01 a barrel in the Globex electronic session. September Brent crude on London's ICE Futures exchange also fell 7 cents, to $48.35. Both have gained nearly 4% this week.

"It is hard to draw a conclusion that the bull market is back, but recent trends suggests the market is tightening--even though at a slower pace than previously thought," said Grace Liu, the head of petrochemical research at Guotai Junan.

A potential market mover later Friday will be the weekly U.S. rig-count data from Baker Hughes. The report is widely used to gauge future production.

There is a growing view that even though U.S. output could hit 10 million barrels a day by 2018, room for growth is limited and production will soon peak, said Li Li, the head of research at ICIS China. Unless demand growth sees a significant jump the next few years, she said softening margins will deter U.S. producers from expanding further.

Refined-product prices were little changed in Asia. Nymex August reformulated gasoline blendstock and diesel each rose 0.1% to $1.527 and $1.4924 a gallon, respectively, while July ICE gasoil eased 0.2% to $442.50 a metric ton.

Write to Jenny W. Hsu at jenny.hsu@wsj.com

Corrections & Amplifications

This item was corrected at 11:58 a.m. ET on Fri., July 14, 2017. The original misstated the name of petrochemical research firm Guotai Junan as Guotai Junnan.

Grace Liu is the head of petrochemical research at Guotai Junan. "Oil Prices Pause After Recent Gains," published July 13, 2017, at 11:53 p.m. EDT, and "Oil Struggles on Concerns About Too Much Supply," published July 14, 2017, at 5:19 a.m. EDT, incorrectly stated the name of the firm as Guotai Junnan in the sixth and 11th paragraphs, respectively. (July 14, 2017)

(END) Dow Jones Newswires

July 14, 2017 12:11 ET (16:11 GMT)