The Paris-based body, which advises developed countries on energy policy, says it expects oil prices to return to $80 per barrel in 2020, with further increases after that.
Advertisement
ANZ also said that big price rises this year were unlikely: “A year end recovery in commodity prices remains unlikely with a stronger US$ and EM (emerging market) growth concerns”.
In another sign of oversupply, a traffic jam of about 40 oil tankers has emerged along the U.S. Texas coast. IEA predicts the price of crude will recover to prior levels in nearly a decade.
The crude stock build overshot the 1 million barrels forecast by analysts in a Reuters poll but was below the 6.3 million suggested by industry group American Petroleum Institute (API).
A few USA oil companies, however, have announced cutbacks in exploration and production spending with WTI and Brent prices trading roughly 17% lower year to date. Key market uncertainties include the pace and volume at which Iranian oil reenters the market, the strength of oil consumption growth, and the responsiveness of non-OPEC production to low oil prices.
Oil prices rebounded on Friday as investors were bargain hunting after oil’s steep losses this week, but a bearish outlook for next year by a top energy watchdog kept prices under pressure.
Russian Federation has reached record output, partly offsetting an overall decline in production from other non-OPEC countries, especially the US.
Brent crude, the global oil benchmark, rose 1.3 per cent to $US45.80 a barrel on London’s ICE Futures exchange.
December natural gas traded at $2.277 USA per million British thermal units, up 1.4 cents, or 0.6%. But what was tolerable a year ago at $100 a barrel has become less profitable-or unworkable-in today’s world of $50 a barrel crude.
OPEC’s collective output target level stands at 30 million barrels per day.
Advertisement
Crude futures had already fell on Thursday as the weekly United States stockpiles report showed soaring inventories.
