EUR/USD likely to find a peak near 1.25: UBS
By Noah Browning
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.
The Organization of the Petroleum Exporting Countries and
its allies, a group dubbed OPEC+, largely kept limits on
production this month, galvanising the market and causing some
investors to predict a supercycle - a large, multi-year price
rise.
"The prospect of stronger demand and continued OPEC+
production restraint point to a sharp decline in inventories
during the second half of the year," the Paris-based energy
watchdog said.
"For now, however, there is more than enough oil in tanks
and under the ground to keep global oil markets adequately
supplied."