Ample crude supples until mid-2016: IEA

AFP, SINGAPORE: The head of the International Energy Agency yesterday said that ample supplies of oil in the world market would extend into the middle of next year, while investment is expected to decline further because of persistently low prices.
However, IEA executive director Fatih Birol said risks remain from seething geopolitical tensions in the oil-rich Middle East which could provide support to prices.
Oil investment is already down 20 percent worldwide this year and another drop is likely in 2016, Birol told an energy conference in Singapore -- marking the first time since the mid-90s that spending has fallen for two straight years.
While cheap crude can be a boon for consumers, they are hurting spending on energy projects.
"This may well have implications for the future of the oil markets," he said in a keynote speech at the Singapore International Energy Week.
"I would like to emphasise that it will be a grave mistake to index our attention to oil security to the oil price trajectory in the short-term," he said.

Ample crude supples until mid-2016: IEA

AFP, SINGAPORE: The head of the International Energy Agency yesterday said that ample supplies of oil in the world market would extend into the middle of next year, while investment is expected to decline further because of persistently low prices. However, IEA executive director Fatih Birol said risks remain from seething geopolitical tensions in the oil-rich Middle East which could provide support to prices. Oil investment is already down 20 percent worldwide this year and another drop is likely in 2016, Birol told an energy conference in Singapore -- marking the first time since the mid-90s that spending has fallen for two straight years. While cheap crude can be a boon for consumers, they are hurting spending on energy projects. This may well have implications for the future of the oil markets, he said in a keynote speech at the Singapore International Energy Week. I would like to emphasise that it will be a grave mistake to index our attention to oil security to the oil price trajectory in the short-term, he said.