“The Atlantic market is currently so well supplied that incremental Libyan barrels are reportedly having a hard time finding buyers,” the IEA said in its monthly report. “Many in the market seem more focused today on potential short-term downward price pressures from a further increase in Libyan production” than on “upward price pressures as might result from an escalation of fighting.”

Moreover, the IEA argues that U.S. and Eurozone sanctions on Russia’s oil sector will not have a major effect on production, reports Anjli Raval for Financial Times. The sanctions only affect new exports and investments by EU-based companies in deep water, artic and non-conventional, or shale, exploration and development.

“Neither set of sanctions will have any tangible near term impact on supplies,” the agency added. “Even for the medium term, their impact appears questionable.”

United States Brent Oil Fund

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Max Chen contributed to this article.