While oil prices have “recovered remarkably” in recent weeks, this should not “be taken as a definitive sign that the worst is necessarily over,” the International Energy Agency (IEA) warned Friday.
“Even so, there are signs that prices might have bottomed out,” the IEA said in its latest monthly report published on Friday echoing oil markets which have seen a recovery in recent weeks on the back of a weaker dollar which helps to fuel demand.
“For prices there may be light at the end of what has been a long, dark tunnel, but we cannot be precisely sure when in 2017 the oil market will achieve the much-desired balance,” the IEA cautioned.
“It is clear that the current direction of travel is the correct one, although with a long way to go. Without an increase in demand expectations, high-cost oil suppliers will continue to bear the brunt of the market-clearing process.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Craig Erlam
Latest posts by Craig Erlam (see all)
- OANDA Market Insights – Episode 95 (Video) - 12/13/2019
- OANDA Market Insights – Episode 95 (Podcast) - 12/13/2019
- Europe open – Boris, UK stocks, trade, gold, oil - 12/13/2019