IEA Reveals a Big Surprise for Oil Bulls

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While Friday put an end to crude's daily winning streak due to a return of fears that the global economy will weaken and American production is skyrocketing, USA oil ended the week 4.1 percent higher, and Brent was up 1.9 percent.

Goldman said, "current fundamentals will tighten physical markets further", driving up spot Brent crude futures above 70 dollars per barrel "as supply losses continue (and) demand growth beats low consensus expectations".

United States crude oil production also dipped, falling by 100,000 barrels per day (bpd) to 12 million bpd.

OPEC, Russia and other non-OPEC producers, an alliance known as OPEC+, are reducing output by 1.2 million bpd from January 1 for six months.

"Tighter global inventories from OPEC-led supply cuts and". The group will discuss this at a meeting in April, although top exporter Saudi Arabia has said a decision may not be made until another gathering in June.

First and foremost is the cut in production agreed to by OPEC and some non-OPEC countries, which also equals 1.2 million barrels a day.

The bulk of OPEC's cuts in February came from Venezuela, which is facing an economic and political crisis and is now subject to USA oil sanctions.

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Despite the new curbs, market indicators followed by Opec will prolong concerns about excess supply.

IEA President Fatih Birol, whose remarks were included in the report, said that there might be extraordinary changes in the global oil industry in the future and that the US would continue to influence the global oil market over this five-year period. The newspaper article also states that USA energy gains will have a price for the environment and that Change.org has described the situation as a "climate disaster".

"Geopolitics has added another complication to the global oil market", said the IEA.

Meanwhile, US sanctions have helped slash output from OPEC members Venezuela and Iran.

Russian Energy Minister Alexander Novak will not attend a monitoring panel of Opec and non-Opec oil-producing countries scheduled for Monday in Baku, two sources familiar with his plans told Reuters.

In 2019, U.S. seaborne oil trade will move into surplus with net exports rising to almost 4 million bpd by 2024.

Iraq exported on average around 3.6 million bpd in January-February, and 3.7 million in December.

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