The International Energy Agency released a statement on global oil supplies late on April 23, reiterating that oil markets “are now adequately supplied”.
The IEA also emphasized that global spare production capacity “remains at comfortable levels”, with around 3.3 million barrels per day. Saudi Arabia supplies 2.2 million barrels while the United Arab Emirates, Iraq and Kuwait supplying 1 mb/d.
The IEA statement does not raise any alarms about the U.S. move to ban all oil purchases from Iran, and it says that the U.S. move will mainly hurt Iran’s exports.
With the six-month exemptions the U.S. had given to friendly countries ending on May 1, Iran’s daily exports already dropped in April to 1.1 mb, from 1.4 in March, according to IEA.
The statement also forecasts a huge 1.6 mb/d growth in U.S. oil production in 2019 and more exports are expected “as infrastructure bottlenecks in the United States are easing”.
However, IEA sounds a note of caution about oil prices, saying, “with global economic growth increasingly fragile, consumers and producers should take steps to avoid higher oil prices that will prove painful to all alike.”