The IEA warned about a possible imbalance of supply and demand in the oil market

The increase in global oil production since October may begin to face a decrease in demand on the international market. This is evidenced by the August report of the International Energy Agency (IEA).

"Oil prices have been targeted by rapidly changing market dynamics. While new sanctions on Russia and Iran threaten to affect trade flows, weaker economic growth may constrain demand. Volatility in the oil markets fell to almost a historic low in July," the text says.

For example, Brent crude futures fluctuated in the range of $ 70 per barrel, and the supply agreement of the Organization of Petroleum Exporting Countries (OPEC+) and the looming prospects of an "unsustainable build-up of reserves" at the end of the year eventually led to the fact that futures for oil of the aforementioned brand fell to about $ 67 per barrel.

The report noted that the weakening demand for oily flammable liquid is particularly noticeable from China, India and Brazil. In addition, it is specified that the global demand for oil this year has "already decreased many times" by a total of 350 thousand barrels per day.

According to the latest data indicating weak demand in the world's leading economies, consumer confidence is still at a low level, so a sharp recovery in demand is called "unlikely" by the IEA.

"Although it is too early to determine the outcome of these recent policy changes moving in different directions, it is clear that something will have to be sacrificed so that the market can rebalance," the report concluded.

Unknown heroes: which countries are breaking into the elite of the global oil industry

From Namibia to Argentina, new powers are becoming major players in the global hydrocarbon market

Evgeny Shatov, partner of the venture capital investment firm Capital Lab, noted in an interview with Izvestia on August 12 that oil prices remain close to the lowest levels in two months, despite the increase in quotations. He noted that this situation is greatly influenced by geopolitics — there is concern in the market about a possible oil surplus.

All important news is on the Izvestia channel in the MAX messenger.