March 2016, Vol. 243, No. 3
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IEA Sees 'Light At The End Of The Tunnel' For Oil Markets
The IEA struck a more bullish note in its latest monthly report, pointing to “signs that prices might have bottomed out.” The Paris-based energy agency found a variety of reasons to think that the oil markets are turning a corner, including: supply outages in Iraq, Nigeria, and the UAE; the declines in non-OPEC supply; tepid but steady demand; recent weaknesses in the U.S. dollar; and the potential that OPEC takes stronger action to boost prices, although any meaningful steps to reduce supply remain unlikely. The March report is much more bullish than the IEA’s previous edition, when it came to the conclusion that it was “very hard to see how oil prices can rise significantly in the short
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