The recent spike in oil should ease in the near term, according to the International Energy Agency’s (IEA) latest monthly report, but there could be a large supply gap late next year if the Organization of Petroleum Exporting Countries (OPEC), year as oil demand will grow steadily thanks to a solid global economy.
The fact that the recent spike in oil prices should ease is a good thing, according to the Paris-based organization, given the concerns that surging oil prices could crimp global economic growth.
Oil prices are too high, OPEC is at it again. Not good!
— Donald J. Trump (@realDonaldTrump) June 13, 2018
“Prices are unlikely to increase as sharply as they did from mid-2017 onwards and thus the dampening effect on demand will be reduced,” the IEA said in its latest monthly report.