Wed | Aug 16, 2017

International group says oil supply will slowly tighten

Published:Tuesday | March 7, 2017 | 3:00 AM
An offshore oil rig.

HOUSTON (AP):

An international group representing oil-importing countries warns that the global supply of oil could lag demand after 2020, leading to higher prices.

There's a worldwide glut of oil now, and the International Energy Agency says that the supply looks adequate for the next three years thanks to rising production in the US and a few other nations.

But the group says that supply growth will slow after 2020, with a drop in spare production capacity expected unless new projects are approved soon. Investment in new projects fell during the slump in oil prices that began in mid-2014. In addition, OPEC members agreed to short-term cuts to boost crude prices.

The group, whose members include the US and other oil-importing nations, issued its latest five-year forecast yesterday.