Warmer weather, others threaten oil market

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Global oil demand growth looks likely to increase more slowly over the coming months, as warmer temperatures cut consumption. This may tilt the market back into surplus in the first half of next year, the International Energy Agency (IEA) said yesterday.

In its monthly oil market report, the Paris-based IEA cut its oil demand forecast by 100,000 barrels per day (bpd) for this year and next, to an estimated 1.5 million bpd this year and 1.3 million bpd next year.

Geopolitical tension in the Middle East and intermittent supply outages in the likes of Nigeria and Iraq have pushed oil above $60 a barrel for the first time since 2015, while global inventories have fallen, prompting many market watchers to raise their price forecasts.

IEA said: “Does it mean the market has found a ‘new normal’ where the accepted floor might have moved from $50/bbl to $60/bbl? This might be a tempting view, assuming supply disturbances will continue and tensions in the Middle East will not ease.”

The post Warmer weather, others threaten oil market appeared first on The Nation Nigeria.

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