The price of oil is in a remarkable upswing and may have passed the bottom level, the International Energy Agency (IEA) thinks.
In its monthly report, the IEA pointed out that oil prices have been on the rise for several weeks.
Talks between the major oil countries about freezing output might indicate that they are trying to push the price up to 50 dollars a barrel, according to the IEA. The Energy Agency also believes that Iran’s increased oil exports after international sanctions against the country was lifted, “has been less dramatic than the Iranians said it would be.”
In addition, the production in the United States and other countries outside theoil cartel OPEC is now on the way down–since low rates make the oil business here less profitable.
IEA still thinks that the oil stocks of the world will continue to be filled this year. But the increases of the oil stocks will be slower in the second half.
–For the prices it can be like the light at the end of what has been a long, dark tunnel. But we can not be absolutely sure when in 2017 the oil market will achieve the long-awaited balance, the report said.
The price of Brent crude oil fell from 115 dollars a barrel in the summer of 2014 to 28 dollars in January this year. Since then, the price has climbed to over 40 dollars a barrel.
Source: NTB scanpix / Norway Today