Oil-Price Recovery Threatened by Weak Demand, Says IEA

14 Nov 2017   Prices

Crude prices have risen roughly 20% since September. The IEA noted that oil prices have risen roughly 20% since early September—with Brent crude sustaining gains above $60 a barrel in recent weeks—on the back of supply disruptions and geopolitical tensions in the Middle East. But if those problems prove temporary, a “fresh look at the fundamentals” would likely show the “market balance in 2018 does not look as tight as some would like and there is not in fact a ‘new normal.’” The IEA’s findings stand in contrast to that of the Organization of the Petroleum Exporting Countries, which released its monthly oil report Monday. OPEC raised its forecasts for global oil demand for this year and next, touting increased market rebalancing and stability. The two reports come ahead of a highly anticipated OPEC meeting in Vienna on Nov. 30, at which the […]

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