The world oil market is heading for a sizeable surplus in the new year, the International Energy Agency said as it reassured markets that the agency stood ready to act if needed to cover any supply disruption from Iran.
Oil prices have risen in recent weeks on investor concern that Israel may retaliate against a missile attack from Iran, a major oil exporter and OPEC member, by hitting its oil facilities or nuclear sites.
But the IEA, which manages industrialised countries' emergency oil stocks, said public stocks were more than 1.2 billion barrels and spare capacity in OPEC+, which comprises the Organization of the Petroleum Exporting Countries and allies such as Russia, stood at historic highs.
"As supply developments unfold, the IEA stands ready to act if necessary," the agency said in a monthly report.
"For now, supply keeps flowing, and in the absence of a major disruption, the market is faced with a sizeable surplus in the new year."
Also in the report, the IEA further cut its global oil demand growth forecast for this year, citing weakness in China, a day after OPEC also lowered its demand projections.
