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IEA Warns of Higher Oil Prices

IEA Warns of Higher Oil PricesIEA Warns of Higher Oil Prices

The International Energy Agency warned that oil prices could break out above $80 per barrel unless other producers act to offset deepening supply losses in Iran and Venezuela. Iranian crude exports have fallen significantly before US sanctions even take effect, the IEA said in a monthly report, World Oil reported.

The economic crisis in Venezuela is also pushing output there to the lowest in decades. It is uncertain whether Saudi Arabia and other producers will fill any shortfall, or how far they are able to, the agency said.

“Things are tightening up,” said the Paris-based IEA, which advises most major economies on energy policy. “If Venezuelan and Iranian exports do continue to fall, markets could tighten and oil prices could rise” unless there are offsetting production increases elsewhere, it said. Oil rose on Friday, clawing back some territory after prices fell by the most in a month in the previous session, as the focus returned to supply concerns ahead of a November deadline for US sanctions on Iranian crude.

Brent crude was up 25 cents at $78.43 a barrel. The global benchmark fell 2% on Thursday after rising on Wednesday to its highest since May 22 at $80.13, CNBC reported.  US West Texas Intermediate futures were up 41 cents at 69.00 a barrel after dropping 2.5% on Thursday.

 

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