This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-35530123
The article has changed 5 times. There is an RSS feed of changes available.
Version 1 | Version 2 |
---|---|
Oil price recovery will be short-lived, says IEA | Oil price recovery will be short-lived, says IEA |
(about 2 hours later) | |
A recent rise in oil prices is a "false dawn" and the oversupply of crude is set to worsen, according to the International Energy Agency (IEA). | A recent rise in oil prices is a "false dawn" and the oversupply of crude is set to worsen, according to the International Energy Agency (IEA). |
The IEA expects oil stocks to grow by two million barrels a day in the first quarter and 1.5 million barrels a day in the following three months. | |
In January, Brent crude touched a 13 year-low of $27.67 a barrel and has since recovered to above $33. | |
But that is still a long way from the $112 level reached in June 2014. | |
The IEA forecast that stock building could continue in the second half of 2016 at a rate of 300 million barrels a day. It said: "If these numbers prove to be accurate, and with the market already awash in oil, it is very hard to see how oil prices can rise significantly in the short term." | |
Meanwhile demand for oil is expected to weaken. The IEA forecasts that demand growth will fall to 1.2 million barrels a day this year, from the 1.6 million barrels a day seen in 2015, the IEA said. | |
The think tank also questioned whether the recent rise in prices was a "false dawn" and concluded that a number of conditions increased the risk of weak oil prices. | |
These included doubts that Opec, the oil cartel, was in talks with other oil producing nations to reduce supply. | These included doubts that Opec, the oil cartel, was in talks with other oil producing nations to reduce supply. |
It also quashed speculation that Opec nations would cut output this year, stating that output from Iraq reached a new record in January. Iran has increased production ahead of sanctions being removed and preliminary data suggested that Saudi Arabia's shipments had increased. | It also quashed speculation that Opec nations would cut output this year, stating that output from Iraq reached a new record in January. Iran has increased production ahead of sanctions being removed and preliminary data suggested that Saudi Arabia's shipments had increased. |