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IEA Says Oil Market Tightening, But Global Demand May Falter

  • Crude inventories to contract for the rest of this year: IEA
  • Yet oil-demand forecasts could be cut amid economic risks
Oil Extends Rally as Russia Shows Commitment to Output Cuts
Photographer: Angus Mordant/Bloomberg
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Global oil markets are tightening as OPEC supply falls, the International Energy Agency said, while warning it could lower demand forecasts because of economic threats.

Crude inventories are set to decline for the rest of the year as Saudi Arabia and its partners curb production, while exports from Venezuela and Iran are squeezed by economic and political crises, the agency said in its monthly report. But it cautioned that threats in the world economy, from Europe to emerging markets, could take a toll on fuel consumption.