Economy could cap oil prices, still risks, says IEA
The agency, which advises industrialised countries on energy policy, said market fundamentals had "clearly eased since the start of the year" and that oil stocks had built up significantly over the last few months.
But the IEA said any move by the Organisation of the Petroleum Exporting Countries to adhere strictly to its declared production target of 30 million barrels per day (bpd) "would risk a potentially damaging price surge".
The IEA said the 12 members of OPEC pumped close to 31.8 million bpd in June, before the imposition of an EU oil embargo on Iran and tougher US sanctions.
The agency kept its estimate of global oil demand growth steady at around 800,000 bpd for this year, rising to around 1 million bpd in 2013. — Reuters