IEA Says Rising US Oil Output to Cover Gap from Iran and Venezuela

The world will require very little extra oil from OPEC this year as booming U.S. output will offset falling exports from Iran and Venezuela, the International Energy Agency said on Wednesday.

The IEA, which coordinates the energy policies of industrial nations, said Washington’s decision to end sanctions waivers that had allowed some importers to continue to buying Iranian crude added to the “confusing supply outlook.”


West Texas Intermediate graph

“However, there have been clear and, in the IEA’s view, very welcome signals from other producers that they will step in to replace Iran’s barrels, albeit gradually in response to requests from customers,” the Paris-based IEA said in its monthly report.

“There is certainly scope for other producers to step up production,” it said, adding that it estimated OPEC states in April had produced about 440,000 barrels per day (bpd) less than the amount agreed in a production pact, with Saudi Arabia producing 500,000 bpd below its allocation.

via Reuters