Brent crude climbs as International Energy Agency says oil may have bottomed out

Discussion in 'Market News' started by Lily, Mar 11, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
    Likes Received:
    Agency predicts bigger than expected falls in output for the current year

    Crude prices and commodity companies are climbing after the International Energy Agency said oil may have bottomed.

    The organisation, which coordinates energy policies of industrialised countries, said output from non-Opec countries was beginning to fall quickly and production from Iran - which has only just returned to the export market following the lifting of sanctions - was not dramatic.

    Iran’s return to the market has been less dramatic than the Iranians said it would be: in February we believe that production increased by 220,000 barrels a day and, provisionally, it appears that Iran’s return will be gradual.

    There are clear signs that market forces are working their magic and higher-cost producers are cutting output... For prices there may be light at the end of what has been a long, dark tunnel but we cannot be precisely sure when in 2017 the oil market will achieve the much desired balance. It is clear that the current direction of travel is the correct one, although with a long way to go.

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