Oil prices bounce after IEA signals a tighter overall market
Oil prices rose Friday, bouncing after steep losses a day earlier, after the International Energy Agency highlighted a tight prompt market, while traders speculated on possible further sanctions on Russia.
At 08:35 ET (12:35 GMT), Brent Oil Futures expiring in September rose 0.9% to $69.25 per barrel, while West Texas Intermediate (WTI) crude futures gained 0.9% to $67.19 per barrel.
Crude market looks tight - IEA
The world oil market may be tighter than it appears, the International Energy Agency said on Friday, as refineries ramp up processing to meet summer travel demand.
The IEA, which advises industrialised countries, expects global supply to rise by 2.1 million barrels per day this year, up 300,000 bpd from the previous forecast. World demand will rise by just 700,000 bpd, it said, implying a sizeable surplus.
Despite making those changes, the IEA said rising refinery processing rates to meet summer travel and power-generation demand were tightening the market and the latest, accelerated supply hike from OPEC+ on Saturday had not had much effect.
"The decision by OPEC+ to further accelerate the unwinding of production cuts failed to move markets in a meaningful way given tighter fundamentals," the agency said in a monthly report.
"Price indicators also point to a tighter physical oil market than suggested by the hefty surplus in our balances."
Source: Investing.com
