Oil Prices Climb After IEA Forecasts Even Tighter Oil Market

Brent crude oil is up 0.9% at $75.81 a barrel and WTI futures are up 0.8% at $74.72 a barrel, with early gains increasing after the International Energy Agency published its monthly market report in which it said that global supply is not forecast to keep up with demand. That is particularly the case following the failure of OPEC+ to come to an agreement on production for August and beyond.

While the risk of a return to last year’s price war remains and investors worry about the Delta variant of the coronavirus, the market faces “the prospect of a deepening supply deficit,” the IEA said. The global oil market has used up the supply glut it accrued at the start of the pandemic and now potential inflationary pressures could damage the fragile global economic recovery, the agency added.

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