Oil prices will remain high due to tensions between Iran and the West, the International Energy Agency (IEA) reports.
According to Reuters, the monthly IEA report reveals “a dramatic improvement in world supply and a big build in [oil] stocks”; however, the conflict between Iran and the West keeps pushing up the price.
The IEA report indicates that world oil production increased by 600,000 bpd in mid-April, and OPEC members have been responsible for 90 percent of this increase.
Saudi Arabia reported that it has produced 10.1 million bpd in the past month, its highest level of oil production in the past 30 years.
The IEA says, however: “The path of market fundamentals for the rest of the year remains highly uncertain and geopolitical risks will likely continue to keep prices high.”
It adds: “The IEA will monitor market conditions and stands ready to act if supply conditions warrant it.”
According to the IEA, global oil consumption this year is around 90 million bpd.
Iraq, Nigeria and Libya accounted for an 85-percent increase in OPEC’s oil supply, which is well ahead of the demand for it.