The IEA scotched growing speculation of an emerging commodity super-cycle in its March Oil Market Report (OMR) released this week. “Oil’s sharp rally to near $70/B has spurred talk of a new super-cycle and a looming supply shortfall. Our data and analysis suggest otherwise," the IEA says in a punchy opening.
“For a start, oil inventories still look ample," the report asserts, calculating that OECD industry stocks at end-January remained 63.2mn barrels above the five-year average. It then pointed to the approximately 8mn b/d of spare capacity held by the Opec+ partners following the decision earlier this month to further delay the tapering of deep production cuts (MEES, 5 March). (CONTINUED - 913 WORDS)
