Oil market stretched to the limit – IEA

The International Energy Agency (IEA) has said that the oil market was tightening significantly and that even though higher production from OPEC was “very welcome,” it would cut into limited spare capacity, which could become “stretched to the limit.” Outages around the world are piling up and “we see no sign of higher production from elsewhere that might ease fears of market tightness,” the IEA wrote.
Meanwhile, oil prices have climbed over the last few weeks in large part because nearly 700,000 bpd was shut down in Libya.
However, that changed this week when the National Oil Corp.
moved to lift force majeure on several export terminals, and said that it would begin restoring the disrupted supply.
Oil prices fell sharply on the news, declining by more than 6 percent on Wednesday