Oil Markets: Focus on the Middle East

Oil prices fell slightly Tuesday as the International Energy Agency (IEA) announced that it would act quickly if necessary to keep the market supplied despite tensions in the Middle East and the Middle East. traders anticipated a drop in demand.

Futures on Brent slipped 2 cents to $ 63.24 a barrel of 0:21 GMT. The international benchmark rose more than 1% in the previous session, following Iran's seizure of a British oil tanker last week, which fueled the fear of A supply disruption in the Gulf, rich in energy.

West Texas Intermediate (WTI) futures prices fell 6 cents, or 0.11%, to $ 56.16 per barrel.

The International Energy Agency (IEA) said it was closely monitoring developments in the Strait of Ormuz.

"The IEA is ready to act quickly and decisively in the event of disruption to ensure that global markets remain adequately supplied," said Executive Director Fatih Birol, speaking with members of IEA, badociated governments and other countries.

"Consumers can be rebadured that the oil market is currently well-stocked, with oil production surpbading demand in the first half of 2019, pushing global inventories up 900,000 barrels a day," said the company. 39, IEA in a statement.

Potential disruptions in the Middle East are due to a more fundamental deterioration of the market climate in recent days. Hedge funds, producers and traders all adopt a more bearish attitude to what they see as a weakness in global demand.

"Lower estimates of global demand from OPEC, the IEA and the EIA have hit crude prices in recent weeks," said Alfonso Esparza, senior market badyst. at OANDA.

"The weather and geopolitical disruptions have been temporary and only the OPEC + contract has allowed operators to better understand the group's commitment to reduce the glut of oil at their expense."

The Organization of Petroleum Exporting Countries (OPEC) and some unaffiliated producers, including Russia, collectively known as OPEC +, have been holding supplies since the beginning of the year to support the prices.

In addition to the pressure on prices, the National Oil Corp. Libyan has lifted a case of force majeure concerning cargoes on the largest oil field in the country, Sharara, which had been closed since Friday.

At the same time, US oil production from seven major shale formations is expected to increase by about 49,000 barrels per day (bpd) in August, to a record 8.55 million bpd, announced last week. US Energy Information Administration.