Big rises in oil production from North America are helping to keep oil markets well supplied, the West’s energy watchdog said on Tuesday, suggesting oil prices are unlikely to rise much soon despite armed conflicts near key oil-producing areas.
Sunni insurgents have made sweeping gains across northern Iraq in the last month, over-running several oilfields and raising concerns about the security of oil supplies from the south of the country.
Another important oil producer, Libya, has been in turmoil for years and is pumping only around a third of the volume of oil it produced under former dictator Muammar Gaddafi.
But the International Energy Agency (IEA) said that, although the situation in several key oil producing countries “remains more at risk than ever,” oil supplies were ample, and the Atlantic market was even reported to be facing a glut.
Output from the Organization of the Petroleum Exporting Countries rose 300,000 barrels per day (bpd) to a five-month high of 30.44 million bpd in July, as higher production in Saudi Arabia and Libya more than offset declines in Iraq, Iran and Nigeria, it said.