Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Oil Market Supply Tightening, Demand Remains Uncertain - IEA

Published 04/11/2019, 04:20 AM
Updated 04/11/2019, 04:30 AM
© Reuters.

© Reuters.

Investing.com - The International Energy Agency said Thursday that oil markets have tightened this year, thanks to OPEC-led production curbs and U.S. sanctions on Iran and Venezuela, but noted that the demand outlook for 2019 was extremely uncertain.

“The huge increase in oil production we saw in the second half of 2018 has reversed following the implementation of the new Vienna Agreement and the increasing effectiveness of sanctions against Iran and Venezuela,” the IEA said in its monthly report, leading to a “dramatic increase in prices” so far this year.

The IEA highlighted that demand was a “very important” piece of the puzzle for oil market rebalancing, but uncertainty over the global economy was too intense to allow for a change to its forecasts.

“As far as 2019 is concerned, amongst the analyst community there is an extraordinarily wide divergence of view as to how strong growth will be,” the IEA said in its report.

“We maintain our forecast of 1.4 million barrels per day, but accept that there are mixed signals about the health of the global economy, and differing views about the likely level of oil prices.”

Oil prices continued to trade lower Thursday after the report was released, pulling back from five-month highs. Crude bulls ran out of steam overnight with profit-taking attributed to Wednesday’s surge in U.S. oil inventories.

U.S. crude oil futures fell 0.6% to $64.20 by 4:30 AM ET (8:30 GMT), while Brent oil traded down 0.3% to $71.52.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.