Oil prices are unlikely to mount a dramatic and sustained surge despite vaccines expected to boost demand later this year, the International Energy Agency (IEA) said on Wednesday, with the world still awash in oil.
“Oil’s sharp rally to near $70 a barrel has spurred talk of a new supercycle and a looming supply shortfall. Our data and analysis suggest otherwise,” the IEA said in its monthly report.
For all the latest headlines follow our Google News channel online or via the app.
“For a start, oil inventories still look ample compared with historical levels despite a steady decline ... On top of the stock cushion, a hefty amount of spare production capacity has built up as a result of OPEC+ supply curbs,” it said.
The Organization of the Petroleum Exporting Countries and its allies, a group dubbed OPEC+, largely kept limits on production this month, galvanizing the market and causing some investors to predict a supercycle -- a large, multi-year price rise.
“The prospect of stronger demand and continued OPEC+ production restraint point to a sharp decline in inventories during the second half of the year,” the Paris-based energy watchdog said.
“For now, however, there is more than enough oil in tanks and under the ground to keep global oil markets adequately supplied.”
More OPEC+ supply to follow oil market rebalancing, says IEAGlobal oil supply still outstrips demand due to persistent COVID-19 lockdowns and the spread of variants, the International Energy Agency (IEA) said ... Energy
World has not yet reached peak oil demand despite COVID-19 dip: IEA chief Fatih BirolGlobal demand for crude oil has yet to reach its peak, despite challenges to demand caused by the coronavirus pandemic, International Energy Agency ... Energy
Coronavirus: Global oil demand unlikely to get vaccine boost until late 2021 says IEAGlobal oil demand is unlikely to get a significant boost from the roll-out of vaccines against COVID-19 until well into 2021, the International Energy ... Energy
Oil prices decline amid rising stockpiles, coronavirus demand concernsOil prices dropped on Tuesday, extending declines to three consecutive days, as rising stockpiles in the United States added to the risks to a demand ... Coronavirus
China’s binge on Iranian oil clogs up ports and storage tanksChina is gorging Iranian oil even as other nations wait for U.S. President Joe Biden to remove sanctions on the Islamic Republic.Crude shipments from ... Energy
Kuwait finance minister Hamada calls for reforms despite rebound in oil pricesKuwait’s finance minister said on Wednesday that an increase in oil revenues due to higher crude prices would not cover the Gulf state’s budget ... Economy