International Energy Agency Forecasts Oil To Stay Near $50/Barrel

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PARIS, FRANCE – The International Energy Agency believes that the price of oil isn’t likely to go above $50/barrel, despite a rise of nearly 90% since its thirteen-year low back in January.

The CBC is reporting that the agency, whose member states are exclusively members of the Organisation for Economic Co-operation and Development, has slightly upped their estimate for global oil consumption for the rest of the year. They say however, that a large worldwide stockpile of oil will result in prices stabilising through the rest of the year.

The IEA’s forecast for world oil demand this year is 96.1 million barrels/day, which is a 1.3 million barrel/day increase from 2015. The IEA also expects demand to grow by 1.3 million barrels/day next year to 97.4 M bbl/day.

The IEA says that though world oil supply decreased by 800,000 barrels in May to 95.4 M bbl/day, the commercial inventory of crude oil among OECD member nations stood at nearly 3.07 billion barrels of oil at the end of April, which is 222 million more than in 2015.

With files from the CBC News: http://www.cbc.ca/news/business/oil-price-iea-1.3634143