“The strong rebound in oil to around $ 70 a barrel has caused talk of a new supercycle and an imminent supply deficit. Our data and analysis suggest otherwise, ”the IEA said in its monthly report.
“For starters, oil inventories still appear ample compared to historical levels despite a steady decline … In addition to the stock buffer, a large amount of excess production capacity has built up as a result of supply constraints. OPEC +, “he said.
The Organization of the Petroleum Exporting Countries and its allies, a group called OPEC +, largely maintained limits on production this month, galvanizing the market and prompting some investors to forecast a supercycle – a large multi-year price surge. .
“The prospect of stronger demand and continued moderation in OPEC + production point to a sharp drop in inventories during the second half of the year,” the Paris-based energy watchdog said.
“For now, however, there is more than enough oil in the tanks and underground to keep the world’s oil markets adequately supplied.”