IEA: Crude prices not likely to jump again

Economy 6/13/2018, 11:57 AM
IEA: Crude prices not likely to jump again

The International Energy Agency (IEA) stated on Wednesday that it is unlikely that crude prices will see another jump in the near future, according to its official monthly report. The agency noted that demand and global economic expansion worries will likely subdue the rising oil price.

"Prices are unlikely to increase as sharply as they did from mid-2017 onwards and thus the dampening effect on demand will be reduced," the report stated. The agency warned of "the possibility of higher prices, a weakening of economic confidence, trade protectionism and a potential further strengthening of the U.S. dollar."

The organization said that its forecast for oil demand growth remained unchanged for 2019 at 1.4 million barrels per day, which is largely the same as this year's level. The IEA noted that non-OPEC supply for this year is set to grow by 2 million barrels per day while an increase of 1.7 million barrels per day is expected in 2019. The boost in oil supply is mostly contributed by the rising US output, according to the agency.

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