‘The sharp rise in oil prices to almost $ 70 a barrel spoke of a new superbike and a looming shortage of supplies. Our data and analysis indicate otherwise, ”the IEA said in its monthly report.
“For a start, the oil supply still looks generous compared to historical levels despite a steady decline … In addition, a solid amount of extra production capacity has been built up due to OPEC + supply channels,” he said.
The Organization of the Petroleum Exporting Countries and its allies, a group called OPEC +, this month largely kept pace with production, which galvanized the market and some investors predicted a superbike – a large, multi-year price increase.
“The prospect of stronger demand and continued production control from OPEC + indicates a sharp decline in inventories during the second half of the year,” said the watchdog in Paris.
“For now, however, there is more than enough oil in tanks and underground to adequately supply the global oil markets.”