Militant attacks that ignited fires at two Libyan crude oil export terminals stymied market bears this week. The bruins had been feasting on rising U.S. production and an anticipated increase in production from OPEC.
Now it appears OPEC members, meeting this week, may choose a more modest increase than Saudi Arabia has sought. But that does not erase recent warnings from the International Energy Agency (IEA).
“Higher flows from Saudi Arabia, Iraq and Algeria offset a fall in Nigeria and further declines in Venezuela,” IEA said in its June 13 Oil Market Report. “While the call on OPEC is set to ease in 2019, potential losses from Venezuela and Iran could require others to produce more.”