Oil up as IEA sees tighter sup­ply

The Pak Banker - - MARKETS/SPORTS -

NEW YORK: Oil rose up to 2 per­cent, with US crude gain­ing for a fourth straight week, af­ter the world's en­ergy watch­dog said the mar­ket may have hit bot­tom, al­though Gold­man Sachs said the 50 per­cent rally in un­der two months was "pre­ma­ture." The Paris­based In­ter­na­tional En­ergy Agency, which co­or­di­nates en­ergy poli­cies of in­dus­tri­al­ized na­tions, said U.S. and non-OPEC crude out­put was be­gin­ning to fall quickly, while in­creases in Ira­nian sup­ply had been less than dra­matic. The IEA said it be­lieved nonOPEC out­put will fall by 750,000 bar­rels per day this year, some 25 per­cent more than the 600,000 bpd it pre­vi­ously fore­cast. Gold­man Sachs re­mained bear­ish, say­ing in a note to clients that prices could fall sharply in com­ing weeks with record U.S. in­ven­tory builds off­set­ting pro­duc­tion de­clines in the coun­try. The bank said oil prices need to be low enough to en­sure sup­ply is re­duced over time, pro­ject­ing $39 a bar­rel on the av­er­age for global bench­mark Brent crude in 2016, down from its pre­vi­ous fore­cast of $45. -Ap

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