The International Energy Agency, IEA, on Monday, February 22, said that the oil market will begin rebalancing in 2017.
IEA in its medium-term report released on Monday noted that while oil prices should start to rise gradually once the market begins rebalancing, the availability of resources that can be quickly tapped will limit the scope of the price increase.
However, the report points to the risk of an oil price spike in the later part of the outlook period arising from insufficient investment.
“It is easy for consumers to be lulled into complacency by ample stocks and low prices today, but they should heed the writing on the wall: the historic investment cuts we are seeing raise the odds of unpleasant oil-security surprises in the not-too-distant-future,” IEA Executive Director Fatih Birol, said while launching the report.
