IEA expects OPEC+ to bridge ‘artificial’ gap in oil supply

IEA expects OPEC+ to bridge 'artificial' gap in oil supply

International Energy Agency chief Fatih Birol said on Wednesday that oil markets are suffering from an artificial supply gap, and he expects OPEC+ producing countries to do more to cut prices at an upcoming meeting.

Texas Oil Storage Unit 9/06/2016 Reuters/Richard Carson

Photo: Reuters

“(The) factor I would like to underline is that the reason for these high prices is the position of some major oil and gas suppliers; and some countries have not taken a useful position in our view in this regard,” Fatih Birol said in an online presentation. .

“Some of the core tensions in today’s markets can be construed as artificial tightening … because in the oil markets today we see about 6 million barrels of additional production capacity that the main producers, the OPEC+ countries, have”, the key added. . of IEA.

OPEC+, the Organization of the Petroleum Exporting Countries, formed by Russia and their allies, ignored calls from the United States and some other consumers to pump more.

Birol said he hopes that when the Producers Club meets on December 2 to discuss the policy, “it will take necessary steps to help ease global oil markets and bring prices to reasonable levels.”

Birol said Russia could “easily” increase its gas exports to Europe by about 15% in order to offset the slack in supply and prices.

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About the author: Sarah Gracie

Sarahis a reporter covering Amazon. She previously covered tech and transportation, and she broke stories on Uber's finances, self-driving car program, and cultural crisis. Before that, she covered cybersecurity in finance. Sarah's work has appeared in The Wall Street Journal, Bloomberg, Politico, and the Houston Chronicle.

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