Oil supply risks offset higher capacity, underpin prices: IEA

The IEA now expects global demand for oil to grow by half a million barrels a day less than previously estimated.

It stressed uncertainty on every front and said that the oil market was now at a “crossroads.”

But global thirst for oil will still increase by 1.2 percent or 1.1 million barrels a day (mbd) per year over the next five years, to 95.7 mbd from 89 mbd in 2011, a statement said.

The IEA spoke cautiously of a “seemingly more benign medium-term market outlook,” based in part on increased OPEC output.

The agency set its outlook “against the backdrop of sluggish economic growth and increasing energy efficiency,” particularly in advanced economies.

There was great uncertainty over the trend of prices, which remained firm because of potential threats to Gulf supplies, the agency said, a result of sanctions on Iran related to Tehran's nuclear ambitions.

The agency highlighted a major shift in energy production owing to the development of North American resources which have resulted in “some of the lowest energy costs on the planet in the form of cheap natural gas.”

SHARE CLOSE
Blogger		Google+
Live Journal		Plurk
Stumble Upon

Tweet

	PREVIOUS ARTICLE
	Oil prices rise slightly in the wake of decline in United States jobless claims

NEXT ARTICLE
Markets start strong following US jobs relief

Write a Comment

Terms

Enter your comments - 3000 characters max

Type in image code

 Receive China Post promos
 Respond to this email

Submit