Investing.com – Oil prices rebounded Friday from the previous day’s rout, but still logged their biggest weekly loss since the second quarter after data showed U.S. drillers ramping up output, even as a second global energy agency said the market was adequately supplied.
A weekly reading on the U.S. oil rig count rose by eight, the first such climb in four weeks, which signaled the U.S. shale crude industry was intensifying drilling with prices near four-year highs. Shale drillers were largely responsible for the 2014-2017 crude glut.
The Paris-based IEA, which watches over the interest of Western crude importers said in its monthly report that oil markets looked “adequately supplied for now” after a big production increase in the last six months. But it added that the spare capacity of oil producers to deal with emergencies were down to just 2% of global demand.
The IEA’s remarks came a day after Vienna-based OPEC, which groups some of oil’s biggest exporters, slashed its own demand growth forecast for this year by 800,000 barrels per day to 1.54 million bpd, citing headwinds to the global economy. OPEC even suggested there could be another oil glut by 2019 if output continued rising.