Oil bulls return: influential IEA says crude prices appear to have ‘bottomed out’
International Energy Agency hints worst is over, but warns recent rally may not last
PARIS—The International Energy Agency says “there are signs that prices might have bottomed out” in the global oil market.
But the Paris-based organization warns a recent recovery in crude prices from multi-year lows does not mean that there will be a significant and sustained rebound in the short-term.
The IEA`s monthly oil market report says supplies dropped in February by 180,000 barrels per day. But it also noted a sharp slowdown in demand growth, particularly in the United States and China.
The Brent crude international benchmark for oil was up 81 cents to $40.86 a barrel on Friday, having hit a low of $28.50 a barrel in January. The price was above $100 a barrel as recently as 2014.
Meanwhile, futures contracts for the West Texas Intermediate benchmark crude used in the United States and Canada were trading at US$38.59 and higher this morning. WTI had also been above US$100 a barrel at the peak in mid-2014.
WTI contracts from May forward were above US$40 a barrel Friday morning.
Canada’s economy has been hit hard by a rapid and deep decline in global oil prices that began in late 2014 and persisted through 2015 and early this year.