IEA says oil stocks, non-OPEC output to buffer market from shocks - Reuters

IEA says oil stocks, non-OPEC output to buffer market from shocks - Reuters:

Surging oil production from non-OPEC countries led by the United States along with abundant global stocks will help the market weather political shocks such as the U.S.-Iran stand-off, the International Energy Agency (IEA) said on Thursday. 


“For now the risk of a major threat to oil supplies appears to have receded,” the Paris-based IEA said in a monthly report.

“Today’s market, where non-OPEC production is rising strongly and OECD stocks are 9 million barrels above the five-year average, provides a solid base from which to react to any escalation in geopolitical tension,” the IEA said.

The IEA said it expected production to outstrip demand for crude from the Organization of the Petroleum Exporting Countries (OPEC) even if members comply fully with a pact with Russia and other non-OPEC allies to curb output.