The agency downwardly revised non-OPEC oil supply to rise 730,000 barrels per day by the end of 2012, reports Guy Chazan for the Financial Times. OPEC spare capacity is calculated at below 3 million barrels per day, the first time since 2008. It also projected that 2012 oil demand growth will remain at 800,000 barrels per day.
The combination of low OPEC spare capacity, lower non-OPEC supply and tighter Western oil inventories could mean that we are in for a “bumpy ride in the months ahead,” the IEA added.
U.S. Oil Fund
For more information on oil, visit our oil category.
Max Chen contributed to this article.