The International Energy Agency stated on Tuesday that rising oil prices could soon start reducing as the U.S. leads a global recovery in supply.
- Oil prices have risen above $80 per barrel in the last few weeks, rising to their highest level in seven years, as demand outweighed supply.
- The momentum behind the increase in prices has prompted some experts to forecast a return to $100 per barrel of oil.
- IEA stated that the global oil market remains tight, but a recovery in the price rally could be on the horizon.
- The global demand for oil is also strengthening due to increased gasoline consumption and rising international travel as more nations re-open their borders.
- Meanwhile, higher oil prices, deteriorating industrial activity, and rapid resurgence of COVID-19 infections in Europe are likely to interfere with price increases.
On the supply side, the group stated it expected an increase of 1.5 million barrels each day in global oil output in the last three months.
CL1! Up +0.40%, USOIL up +0.42%Source: IEA