NEW YORK: Global oil prices could climb further because of the Opec+ coalition’s “chronic” struggle to revive production, unless the group’s Middle Eastern heavyweights pump extra to compensate, according to the International Energy Agency (IEA).
Crude has rallied to a seven-year high above US$90 (RM377) a barrel as demand bounces back from the pandemic while supplies around the world lag behind. Plagued by under-investment and disruptions, the 23-nation Opec+ alliance has been unable to fully restore the output it halted – a problem the IEA expects to worsen.
With oil inventories at the lowest in seven years, the agency sees markets facing further strain.
“The oil market is incredibly tight,” Toril Bosoni, head of the agency’s markets and industry division, said in a Bloomberg television interview.
“Prices continue to surge and are now reaching levels that are uncomfortable for consumers across the world.” — Bloomberg
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