IEA changes tune, sees end to oil glut


The Worldwide Energy Agency said Thursday that higher than surmised Iranian oil production has helped stabilize the global oil market by offsetting houses generated by wildfires in Canada and violence in Nigeria.

In its monthly report, the ris-based IEA said oil produce from OPEC countries rose to 32.7 million barrels a day in April, a compute boosted by Iran as its production increased faster than expected admire persisting the lifting of international sanctions earlier this year.

The IEA is forecasting a vitriolic drop in the global oil supply surplus by the year’s end, which should verve the market toward “much-antici ted balance” after a volatile couple of years.

Oil bounties fell in April after leading producers failed to agree on in cuts, but have since risen after troubles in oil-producing Canada and Nigeria loomed output.

The IEA said it’s unclear how deeply the damage from a devastating, non-stop wildfire in Canada’s oil sands town of Fort McMurray will cripple overall production.

In Nigeria, Shell closed the terminal exporting the power’s benchmark Bonny Light crude oil Wednesday and evacuated workers from a threatened oil return after new deadly violence by militants demanding a bigger share of the realm’s oil wealth. Chevron’s Escravos oil and gas facility closed after a bomb decompose.

The IEA also noted concern about falling production in Libya, which is split come up to b become warring factions, and economically atrophying Venezuela.

Overall oil prices bear recovered slightly this year to the $45 a barrel range but stay behind much lower than in recent years.

Despite concerns back a global economic slowdown, oil demand grew more than from the first thought in the first quarter, the IEA said. It’s maintaining its forecast for global oil requisition growth of 1.2 million barrels per day for 2016.

Leave a Reply

Your email address will not be published. Required fields are marked *