Oil prices continued their downward movement after the announcement made by the International Energy Agency (IEA).
Earlier, the IEA had increased the oil demand forecast. Nevertheless, experts at IEA suppose that a rise in oil prices may be stopped by the fact that OPEC’s members are pumping record amounts of crude. Amid this situation, Brent lowered to $65.1 a barrel and WTI fell to $60.67 a barrel.
However, some experts think that record oil production will have no influence on oil prices due to military success of terror group Islamic State.
Islamic State militants seized a power plant in the the city of Sirte that supplies electricity to central and western parts of Libya. Earlier, the terror group had seized control in Nofalya, a city situated near oil ports of Sidr and Ras Lanouf.
The largest African oil inventories are located in Libya. Before the war, the country produced 1.5 million barrels a day, now the production amounts to 0.4 million barrels a day.
Terrorists also managed to gain control of oil fields in Syria and Iraq. The richest Iraqi Kurdistan’s oil field is also under a threat.
An increase in oil supply prevents crude prices from rising. However, Islamic State may support oil prices preventing their collapse.
