IEA Sees Oil Markets Tightening As Venezuelan Output Collapses

"Explosive growth in the U.S. and substantial gains in Canada and Brazil will far outweigh potentially steep declines in Venezuela and Mexico," the IEA said.

The IEA said short-cycle U.S. production was reacting to rising oil prices and therefore it raised its forecast for U.S. crude oil growth for 2018 to 1.1 million bpd from 870,000 bpd in its previous report.

"This represents, after the downturn in 2016 and the steady recovery in 2017, a return to the heady days of 2013-2015 when U.S.-led growth averaged 1.9 million bpd," the IEA said.

(Additional reporting by Libby George; editing by Jason Neely)


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