The International Energy Agency (IEA) director Fatih Birol has signaled that world oil markets are in short supply by the end of this year because of strong demand and fog over supply in some crude producing countries.
“There is certainly some concern that oil markets may be in short supply by the end of this year, so major importing countries such as India and others should be ready,” he said.
He explained that the markets may be scarce due to “very strong growth in demand, and there is a major problem is that Venezuela’s production shrinks.”
Birol said Venezuelan production had halved in the past two years, adding that there was “production fragility” also in countries in the Middle East, Reuters said.
On the market, oil prices fell on news of increased US oil inventories, but the shrinking of Iran’s exports under US sanctions has prevented further falling prices in the market.