An energy watchdog warned on Friday that an oil-price recovery
remained fragile amid a production rebound in the U.S. and brimming
inventories, in contrast with views that lower oil prices are
hurting a North American boom.
In its closely-watched monthly oil market report, the
International Energy Agency said that "behind the facade of
stability, the rebalancing triggered by the price collapse has yet
to run its course, and it might be overly optimistic to expect it
to proceed smoothly."
Steep drops in the U.S. rig count--leading to expectations of
lower output--have been a key driver of an oil price rebound to
about $60 a barrel after they fell below $50 a barrel.
Last month, the energy watchdog, which represents key
energy-consuming nations, said that an oil-price recovery seemed
"inevitable" as a U.S. oil boom was expected to mark a pause. This
week, Abdalla Salem el-Badri, Secretary General of the Organization
of the Petroleum Exporting Countries, said the oil slump was
hurting the shale-oil industry in North America.
But in its report Friday, the IEA said U.S. oil production was
up 115,000 barrels a day in February after declining in November as
companies focused on high‐yield areas of various shale plays.
Write to Benoit Faucon at benoit.faucon@wsj.com
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