IEA Says Oil Has Upside Risks Despite Iran Rejoining Supply

December 11, 2013 Share Print 0

The cost of oil is being sent higher by “remarkably persistent” factors on both supply and demand, despite concerns that a potential return of Iranian oil to the global market would send prices down, according to the International Energy Agency (IEA).

The influential global energy research body raised its estimates for global oil demand for 2013 by 130 kilobarrels of oil per day, to 91.2 million barrels per day, on Wednesday, citing stronger‐than‐expected demand from the Organization for Economic Co-Operation and Development (OECD) countries in the third quarter, particularly the U.S.

There was also a decline in supply of crude oil from OPEC, the group of oil-exporting nations which includes Saudi Arabia. OPEC supply fell by 160 kilobarrels per day in November to 29.73 million barrels a day, the fourth month in a row supply fell, after political disruptions in Libya and Nigeria.

via CNBC

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.