Oil Prices Ease as Supply Shortages Ease, IEA Forecasts Surplus
IEA Predicts Global Oil Surplus by Decade's End
A week-long rally in crude oil driven by a supply shortfall eased on Tuesday as the West's energy watchdog forecast that global inventories would swell in the coming months.
IEA Oil Market Report Provides Insights into Global Oil Market
The IEA Oil Market Report (OMR) is one of the world's most trusted sources of data, forecasts, and analysis on the global oil market. The latest OMR predicts a staggering surplus of oil by the end of the decade as oil companies ramp up production.
World Faces Surplus of Millions of Barrels Per Day
According to the IEA, the world could be facing a surplus of millions of barrels of oil per day by 2030. This surplus is driven by increased production from countries like the United States, Canada, and Brazil.
Oil Prices Rise After Demand Forecast
Oil prices rose to a four-month high on Thursday after the IEA forecast that demand would exceed market supply. However, prices slipped on Tuesday as traders weighed concerns over escalating tensions in the Middle East against the prospect of a global oil surplus.
Expert Insights
- "The oil market is facing a major shift," said IEA Executive Director Fatih Birol. "We are moving from a period of tight supply to a period of oversupply."
- "This surplus will put downward pressure on oil prices," said Bob McNally, founder of energy consulting firm Rapidan Energy Group.
Additional Resources
- IEA Oil Market Report Q4 2023
- Oil Set to Fluctuate Near $75/Barrel as Russia Output Drop Offsets China Demand Rally
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