IEA Says Calm In Oil Markets Could Be Short-Lived

Oil markets have entered a brief period of calm but a storm might be looming later this year when new U.S. sanctions are poised to slash supplies of Iranian oil, the International Energy Agency (IEA) said Aug. 10.

“The recent cooling down of the market, with short-term supply tensions easing, currently lower prices, and lower demand growth might not last,” the IEA, which oversees the energy policies of industrialized nations, said in a monthly report.

Oil prices have rallied close to $80 per barrel, their highest since 2014, on concerns about supply shortages but cooled in recent weeks as Libya regained some lost production and Washington signaled it could give Asian buyers of Iranian oil some exemptions from sanctions for next year.