Oil markets tight, IEA warns | Economy | Saudi Gazette

Oil markets tight, IEA warns | Economy | Saudi Gazette:



"World oil markets are unexpectedly tight as growth in advanced economies picks up, the IEA warned on Thursday, urging OPEC to skip a seasonal output drop as stocks touch six-year lows. Analyst have warned of an oil glut and drop in prices for months. But the International Energy Agency said a pick up in demand in advanced countries, led by the United States, has more than compensated for a slowing of emerging market demand. The IEA, energy market analysis arm of the OECD group of advanced democracies, put much of that switch down to the rebound in the United States and the tightening of US monetary conditions which has sparked turmoil in emerging markets. While much has been made of an apparent slowdown in Chinese growth, the IEA said this was only part of the story. “The real surprise has been the recent resurgence of OECD demand growth,” said the IEA in its regular monthly report. – AFP"



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