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The International Energy Agency (IEA) anticipates tight oil markets, contrasting with the current decline in oil prices, revealed on Tuesday. The agency explained oil prices have been decreasing due to high interest rates and weak economic performance.
The two factors have consequently resulted in decreased global demand, IEA monthly oil report elaborated. The IEA anticipates oil demand to reach 102 million barrel per day (bpd) in the second half of the year.
“In the second half of the year… demand is expected to eclipse supply by almost 2 million barrels per day (bpd),” the report states. The report cited Chinese economic recovery following COVID-19, which exceeded expectations by reaching 16 million bpd in March.
