IEA: Tighter Global Oil Market Awaits if OPEC Sits Tight

The International Energy Agency on Friday kept up its drumbeat for OPEC to lift oil output next month when it meets, warning that world oil demand is likely to outpace supply this winter and that this gap will only widen if the producer group decides not to raise crude production.

The warning by the IEA, in its monthly oil market report, implies that consumers could see higher energy prices if global economic growth continues apace and the U.S., Europe and Asia see normal winter weather,as expected.



The Paris-based IEA,which monitors energy markets on behalf of the world’s 26 most industrialized nations, said inadequate oil supplies amid steady oil demand posed unwanted risks to the world economy at a time of volatile swings in global equity and bond markets caused by investor concerns over the fallout of the U.S. credit downturn.

“The last thing the global economy needs is higher oil prices. Undersupplying the market in this context could bear considerable risks,” the IEA said.

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