LONDON : The global oil market is"walking a tightrope" between scarce supply and the possibility of a recession, the International Energy Agency said on Wednesday, with higher prices and worsening economic conditions already taking a toll on demand.
"For now, weaker-than-expected oil demand growth in advanced economies and resilient Russian supply" has reduced market tightness, the IEA said in its monthly oil report. OPEC producers Saudi Arabia and the UAE will have a limited ability to pump more oil, the IEA warned, with their combined spare production capacity set to fall to 2.2 million bpd in August.
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