IEA talks further growth in oil prices [UPDATE]

12 September 2018 14:08 (UTC+04:00)

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The International Energy Agency (IEA) doesn’t rule out further growth in oil prices until the end of the year, IEA Executive Director Fatih Birol told reporters in Baku Sept. 12.

He said the growth of global demand for oil, decline in the oil industry of Venezuela and the situation in the Middle East will remain the main factors.

If other producers don’t decide to increase production, it is possible to predict the continuation of the growth trend before the end of the year, said Birol.

Today, oil prices reach $80 per barrel, he noted, adding that three factors contributed to this.

First, there is a strong increase in demand for oil, about 1.4 million barrels a day, he said. Such a trend is expected to continue in the coming year as well, he noted.

Second, Venezuela, one of the main producers of oil, cut production from 2.5 million barrels to 1.2 million barrels, Birol said. This is a serious figure and further decline is expected, he noted.

The third factor is the uncertainty in the Middle East, the decline in exports from Iran, as well as the unstable situation in Libya and Nigeria, he said.

"All these factors may contribute to higher oil prices until the end of the year, unless other producers increase production," he added.

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