Oil markets should be ‘comfortable’ in 2024, IEA says
investmentnews.comGlobal oil markets should remain “comfortable” this year as new supplies satisfy demand and keep prices in check, according to the International Energy Agency.
World consumption will increase by 1.2 million to 1.3 million barrels a day in 2024, a “significantly weaker” pace than last year as economic growth slows in China and elsewhere, executive director Fatih Birol said. This will be easily matched by swelling production from the Americas, predominantly the US, Canada, Brazil and Guyana.
“This growth is more than enough to meet the global oil demand,” Birol told Bloomberg television from Paris on Tuesday. “So in the absence of major geopolitical turmoil or major extreme weather events, we would expect a rather comfortable oil market and moderate oil price evolution throughout 2024.”
The IEA will release its latest monthly assessment of world oil markets this year on Feb. 15.
Crude prices have held near $80 a barrel in London in recent weeks, as the relaxed supply picture offsets fears over conflict in the Middle East and production cuts by the Organization of Petroleum Exporting Countries and its partners.
OPEC+ has generally shown “good discipline” in delivering its latest output curbs, Birol said. But he cautioned against any further moves that could bolster fuel prices and rekindle inflation.
The group pledged to cut by a further 900,000 barrels a day this quarter. Saudi Arabia has said the measures can “absolutely” be prolonged and OPEC+ delegates aim to make a decision in early March.
“Inflation is a major risk for the global economy, especially in the emerging countries,” Birol said. “We all need to avoid” actions “which will fuel inflation, including higher energy prices.”
Birol reiterated the IEA’s forecast
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