The International Energy Agency upwardly revised its forecast for oil demand. Fred Katayama reports.
The outlook for oil has brightened. The International Energy Agency upwardly revised its forecast for oil demand in its closely watched report. And after two years of surpluses that sent oil prices south, the IEA says the oil market is essentially balanced. Behind all that: strong growth in demand in gasoline in the U.S. and petrochemicals in India. At the same time, unexpected supply cuts due to Canada's wildfires and militant action in Nigeria helped cut output in May, the first major decline since 2013. The IEA sees demand growing to 1.3 million barrels a day this year and next. But that strong demand growth seen this year might not last. It warns " ... there are large volumes of shut-in production, mainly in Nigeria and Libya, that could return to the market." Despite the upbeat report, oil prices falling for the fourth straight day, with Brent crude dipping below $50. Knocking prices lower: investor skittishness over next week's vote on Britain's possible exit from the European Union.