The markets agitated before the decision of the US Fed; ‘unlikely’ oil supercycle – live business | Business

“The sharp rise in oil to nearly $ 70 a barrel has prompted talk of a new supercycle and a looming supply shortage. Our data and analyzes suggest otherwise, ”the IEA said in its monthly report.

“For starters, oil inventories still appear to be sufficient from historical levels despite a steady decline … In addition to the inventory cushion, significant reserve production capacity has built up due to supply restrictions. OPEC +, “he said.

The Organization of the Petroleum Exporting Countries and its allies, a group dubbed OPEC +, largely maintained production limits this month, galvanizing the market and leading some investors to predict a supercycle – a sharp rise in prices over several years. .

“The prospect of stronger demand and the continued restriction of OPEC + production indicate a sharp drop in inventories in the second half of the year,” said the Paris-based energy watchdog. .

“At this time, however, there is more than enough oil in reservoirs and underground to maintain adequate supplies to global oil markets.”