Oil supercycle unlikely due to ample stocks and supply, IEA says

Published 17/03/2021, 10:00
Updated 17/03/2021, 10:00
© Reuters.

LONDON, March 17 (Reuters) - Oil prices are unlikely to
mount a dramatic and sustained surge despite vaccines expected
to boost demand later this year, the International Energy Agency
(IEA) said on Wednesday, with the world still awash in oil.
"Oil's sharp rally to near $70 a barrel has spurred talk of
a new supercycle and a looming supply shortfall. Our data and
analysis suggest otherwise," the IEA said in its monthly report.
"For a start, oil inventories still look ample compared with
historical levels despite a steady decline...
"On top of the stock cushion, a hefty amount of spare
production capacity has built up as a result of OPEC+ supply
curbs", it said.


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