IEA Head Sees Oil Prices Subdued On Non-OPEC Supply Growth

5 Oct 2017   Prices

Non-OPEC producers not part of the production cut deal continue to raise crude oil supply, which would continue to cap oil prices in the near future, the executive director of the International Energy Agency (IEA), Fatih Birol told Reuters on Wednesday. “The production growth from non-OPEC countries is still there so I do not expect a price rise in the near future,” Birol said. Since the beginning of this year, rising output from non-OPEC countries, mostly from the U.S., has constrained oil price gains—and to a large extent, offset OPEC’s efforts to clear the glut, rebalance the market, and prop up oil prices. But when signs emerged that the global oversupply had started to reduce at a faster pace, oil prices rose in the third quarter, with Brent prices rising by some 20 percent to post their strongest Q3 performance since 2004, and WTI prices booking their strongest Q3 […]

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