London
\nOil markets look \u201cadequately supplied for now\u201d after a big production increase in the last six months, but the industry is coming under strain, the West\u2019s energy watchdog said on Friday.<\/p>\n
The International Energy Agency said in its monthly report that the world\u2019s spare oil production capacity was down to 2 percent of global demand, with further falls likely.<\/p>\n
\u201cThis strain could be with us for some time and it will likely be accompanied by higher prices, however much we regret them and their potential negative impact on the global economy,\u201d the Paris-based organisation said.<\/p>\n
Members of the Organization of the Petroleum Exporting Countries and other exporters such as Russia agreed in June to raise output as the market appeared increasingly tight.<\/p>\n
The price of global benchmark Brent crude has risen from around $45 a barrel in June 2017 and peaked at over $85 this month on bullish bets by speculators.<\/p>\n
OPEC, Russia and others such as US. shale companies had increased production sharply since May, the IEA said, raising global output by 1.4 million barrels per day .<\/p>\n
Overall, OPEC had boosted production by 7,35,000 bpd since May as Middle East Gulf producers such as Saudi Arabia and the UAE more than compensated for declining output in Venezuela and Iran, which is facing US. sanctions from next month.<\/p>\n
Supply from Iran during September dropped to a two-and-a-half year low, the IEA said, as customers continued to cut back in the run-up to new sanctions, which start on Nov. 4.<\/p>\n
Iranian output fell to 3.45 million bpd, it said, down 1,80,000 bpd month-on-month. Iranian oil exports in September fell to 1.63 million bpd, down 8,00,000 bpd from recent 2Q18 peaks, the agency estimated.<\/p>\n
\u201cThe decline may deepen significantly ahead of US sanctions and subsequently as final cargoes are delivered,\u201d said the IEA, which advises major oil consumers on energy policy.<\/p>\n
But the outlook for world oil consumption is faltering, the IEA said as it cut its forecast of global oil demand growth by 0.11 million bpd for both this year and next to 1.28 million bpd and 1.36 million bpd respectively.<\/p>\n
\u201cThis is due to a weaker economic outlook, trade concerns, higher oil prices,\u201d it said.<\/p>\n
OECD commercial stocks rose by 15.7 million barrels in August to 2.854 billion barrels, their highest level since February, on strong refinery output and liquefied petroleum gas restocking, the IEA said.<\/p>\n","protected":false},"excerpt":{"rendered":"
London Oil markets look \u201cadequately supplied for now\u201d after a big production increase in the last six months, but the industry is coming under strain, the West\u2019s energy watchdog said on Friday. The International Energy Agency said in its monthly report that the world\u2019s spare oil production capacity was down to 2 percent of global […]<\/p>\n","protected":false},"author":1,"featured_media":44365,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[410],"tags":[],"class_list":["post-44364","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/44364","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/comments?post=44364"}],"version-history":[{"count":1,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/44364\/revisions"}],"predecessor-version":[{"id":44366,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/44364\/revisions\/44366"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media\/44365"}],"wp:attachment":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media?parent=44364"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/categories?post=44364"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/tags?post=44364"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}