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CALGARY — Ample crude supplies and a weak global economic outlook have pushed world oil prices to a 13-month low despite armed conflicts that have flared up in key producing regions.
Oil markets are “almost eerily calm” even as geopolitical risks abound in the Middle East and in other important energy regions, the International Energy Agency said in the August edition of its much-followed Oil Market Report.
The world is well supplied, after Saudi Arabia ramped up production past 10 million barrels a day, its highest in nearly a year, and its OPEC partner Libya eked out tentative gains. They have made up for losses in Iraq, Iran and Nigeria this summer, the IEA said. Meanwhile, North America’s oil-production renaissance has hummed along unabated.
At the same time, the IEA cut its oil-demand forecast for 2014 by 180,000 barrels a day, after crude deliveries in the Americas and Europe in the last quarter sank by 440,000 barrels a day and the global economy underperformed previous expectations. It trimmed its outlook for all-important Chinese demand growth to 2.9 per cent from 3.3 per cent.