IEA's Birol says oil market is now 'much more balanced'
IEA executive director Fatih Birol on the wires
- Oil's gain has been enforced by developments in the Middle East and Venezuela
- Sees major risk of oil supply crisis in Venezuela
- If oil prices stick, the shale wave may be bigger than thought
- China is entering global gas markets as a 'giant importer'
- Higher oil prices may not be totally desirable for producers
- Higher oil prices could weaken demand growth globally
A general take on the oil market situation currently by the IEA head. I do agree with him though that oil producers - especially OPEC - are trying to find a Goldilocks level for oil prices.
If prices go up too high, it will create imbalance via shale producers coming in. But if prices go too low, it impacts profitability and in turn would make them lean towards more production cuts again.