Rising U.S. production – and expectations for more to the end of the year – could soon balance supply/demand and curb soaring oil prices, the International Energy Agency (IEA) said Tuesday in its closely watched monthly Oil Market Report.

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The global energy watchdog said it now expects crude output to jump by 1.5 million b/d through the rest of this year, with the United States joining Saudi Arabia and Russia as a key driver of increases. This could align supply with demand, even as the latter continues to rise amid a global travel recovery.

“Global oil demand is strengthening due to robust gasoline consumption and increasing international travel as more countries reopen their borders” in the wake of Covid-19 vaccination campaigns, IEA researchers said in their November...