In its closely watched monthly market report, the IEA said that the tight supply and demand balance in the global oil market could be about to ease. It expects output to rise by 1.5 million barrels a day in the remainder of 2021, with the U.S., Saudi Arabia and Russia accounting for around half of that amount.
At the same time, while demand for transportation fuels continue to recover and a supply shortage in the natural gas market has forced some power plants to switch to using oil and refined products, “new Covid waves in Europe, weaker industrial activity and higher oil prices will temper gains,” the Paris-based energy watchdog said.
Oil prices reversed their early gains Tuesday after the IEA became the second forecasting body—after the Energy Information Administration—to predict a looser market in the months to come. Brent crude oil, the global benchmark, was down 0.5% at $81.61 a barrel and U.S. crude futures were down 0.9% at $80.11 a barrel.Resurgent Oil Supply Expected to Soothe Tight Market – WSJ