Baku, Azerbaijan, July 3
By Leman Zeynalova – Trend:
The oil market will reach a greater equilibrium in the second half of 2017, Paul Simons, deputy executive director at the International Energy Agency (IEA) believes.
“In the second half of 2017, we will see some movement towards rebalancing in the market. The market is very dynamic and I think for the time being, we will see the market to reach a greater equilibrium in H2 2017,” Simons told CNBC TV channel.
However, quite a bit uncertainty related to oil market is likely in 2018, he added.
The IEA said in its June Oil Market Report that the global oil demand growth is expected at 1.3 million barrels per day in 2017.
“In 2018, growth increases modestly to 1.4 million barrels per day, as demand reaches a record 99.3 million barrels per day,” said the report.
IEA analysts believe that if Libya and Nigeria continue to grow their output, these extra barrels dilute the value of OPEC's output accord and contribute to delaying the re-balancing of the market.
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