2024-02-16 03:05:46
Global crude oil inventories fell by around 60 million barrels in January to their lowest level since 2016, the International Energy Agency (IEA) said, quoted by DPA. This is despite the drop in demand, the agency said in its monthly report.
The main reason for the fall in stocks is the Arctic cold, which covered large parts of the USA and Canada and disrupted the production process, as well as the reduction of production by some OPEC+ member countries. Stocks increased in December.
“The geopolitical tension in the Middle East and the rerouting of tankers on the route around Africa led to supply disruptions on global markets,” the report states, BTA reported.
Low inventories could affect the ability to respond to unexpected price increases, the IEA warned, adding that demand would be dominated by China and, to a lesser extent, India and Brazil. Together, these three economies will be responsible for 78 percent of the markets’ growth in 2024, the agency concluded.