Global oil supply growth plunging, says IEA
The International Energy Agency (IEA) has said that global oil supply growth is falling rapidly owing to the extended period of low prices. In its Medium-Term Oil Market Report––released on Monday 22 February–– the IEA suggested that, while US light, tight oil output was falling steeply, the market would begin to rebalance again in 2017. It expected that global oil demand would grow at an average of 1.2mb/d through 2021, with the US and Iran showing the leading production gains amongst non-OPEC and OPEC members respectively. IEA executive director Fatih Birol said: “It is easy for consumers to be lulled into complacency by ample stocks and low prices today, but they should heed the writing on the wall: the historic investment cuts we are seeing raise the odds of unpleasant oil-security surprises in the not-too-distant-future”.