IEA: Oil Prices Likely to Remain High through 2019

Rising oil prices and uncertain trade issues are likely to slow growth in oil demand through 2019 and keep supply in alignment with consumption, according to the Paris-based International Energy Agency.

IEA notes that supply and demand are approaching historic peaks of 100 million barrels per day. The price of Brent crude, the international petroleum standard, has climbed from less than $71 per barrel in mid-August to more than $80 this month.

Traders blame a variety of production issues that have kept output in check, including a decision by the Organization of the Petroleum Exporting Countries to gradually offset the declining availability of embargoed crude from Iran rather than hiking production quickly. The cartel says its output rose by 132,000 bpd to 32.8 million bpd in September.

IEA says economic uncertainties, especially among emerging markets, has prompted it to lower its demand outlook for 2019 by 110,000 bpd. Yesterday OPEC reduced its forecasts by 80,000 bpd for this year and 50,000 bpd for 2019. The cartel cites the prospects of slower economic growth in both industrialized an emerging markets.