IEA "International Oil Prices' Soaring Rally Likely to End"

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[Asia Economy Reporter Buaeri] The International Energy Agency (IEA) forecasted on the 16th that the soaring international oil prices may soon come to an end.

According to reports from Bloomberg News and others, the IEA stated in its monthly regular report that "international crude oil supply (production) is increasing," and "the upward trend in oil prices is coming to an end."

In the report, the IEA predicted, "The international crude oil market remains tight in supply and demand, but oil prices are strongly encouraging increased production in the US and other countries," adding, "The trend could change."

As oil prices have recently risen, US oil producers, who had been hesitant to increase production, have also started to raise output. In fact, last month, US crude oil production accounted for half of the global production increase.

Bloomberg News anticipated, "If the IEA's forecast is correct, the burden on consumers suffering from rising oil prices could be significantly alleviated."

The IEA explained that regarding the demand increase, which has acted as another factor alongside supply shortages driving oil prices up, "It remains strong due to increased gasoline consumption and travel demand following the easing of travel restrictions worldwide."

However, it also predicted, "The rise in COVID-19 cases in Europe, weakened industrial activity, and high oil prices could suppress demand."