2024-01-17 17:30:19
The IEA expects oil markets to be in a “comfortable and balanced position” this year, despite tensions in the Middle East, amid rising supply and slowing demand growth , its executive director Fatih Birol told the Archyde.com Global Markets Forum on Wednesday.
“If we have no major geopolitical surprises, I expect a comfortable and more balanced oil market this year,” Birol said on the sidelines of the WEF annual meeting in Davos.
Mr. Birol added that the Paris-headquartered IEA expects a significant increase in oil production from the United States, Canada, Brazil and Guyana this year, even as the Growth in global demand is slowing.
Houthi attacks on shipping in the Red Sea have forced many companies to divert cargo to Africa, lengthening journey times and increasing costs.
The Iran-aligned Houthis say they are acting in solidarity with the Palestinians in Israel’s ongoing war in Gaza.
Mr. Birol noted that so far, production has not been affected by these disruptions. He added that he did not expect a major impact on oil prices unless one or more major oil-producing countries were directly involved in the conflict.
“I don’t expect a major change in the price of oil because we have more than enough oil on the market,” he said.
Brent oil futures were trading 1.4% lower on Wednesday at $77.21 a barrel, and West Texas Intermediate (WTI) oil futures CLc1 were down 1.0% at 71 $.69. [O/R]
The IEA forecasts that global oil demand will increase by 1.1 million barrels per day (bpd) in 2024. It expects non-OPEC supply growth to reach 1.2 million bpd per day (bpd). next year.
The Organization of the Petroleum Exporting Countries (OPEC) forecasts demand growth of 2.25 million bpd in 2024.
“Moderate oil prices would be beneficial for economic growth amid high inflation rates,” he said.
Mr. Birol highlighted that elections in the United States and India, tensions in the Middle East, climate and the transition to clean energy were some of the main risks for the year ahead.
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