IEA warns of an unclear future in oil supply
Oil markets are heading towards a shortage which will be requiring OPEC’s members to discuss a possible increase in output.
The IEA (International Energy Agency) today warned that surplus of supply over demand that the oil market saw in the first quarter could turn into a deficit heading into the second quarter of 2019.
According to the IEA there is a considerable uncertainty regarding the global markets, along with the cuts in supplies as sanctions are imposed on Iran and Venezuela and the current conflit for oil fields in Libya.
Not to mentioned contaminated Russian crude which has made its way into the EU and finally the recent attacks on oil carriers off the coast of the UAE.
Although there is no clear disruption, the supply outlook is somewhat unclear.
OPEC, Russia and its allies have been cutting output by 1.2m barrels a day since January and these same countries will be gathering next month to decide whether to carry on with the agenda.
“We hope that major players will continue to work to ensure market stability,” the IEA said.
“Slower demand growth is likely to be short-lived, as we believe that the pace will pick up during the rest of the year.”
Source: Smart Trend Team
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