IEA says end of oil price rally in sight as production recovers

IEA says end of oil price rally in sight as production recovers

The tightness in global oil markets that propelled prices to a seven-year high is starting to ease as production recovers in the U.S. and elsewhere, the International Energy Agency said.

Demand growth remains robust, but supply is catching up and changes in oil stockpiles seen in October suggest “the tide might be turning,” according to the IEA’s monthly report. If the forecast proves to be correct, it would provide a significant relief for harried consumers who are suffering the consequences of price inflation.

“The world oil market remains tight by all measures, but a reprieve from the price rally could be on the horizon,” the Paris-based IEA said in its monthly report. “Production in the U.S. is ramping up in tandem with stronger oil prices.”