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Oil supply seen outpacing demand, capping price
Emirati officials watch U.S. President Barack Obama's keynote address at the opening ceremony of the World Government Summit in Dubai, United Arab Emirates, Monday, Feb. 8, 2016. Those gathered for the World Government Summit in Dubai offered no immediate solutions to the crises gripping the region, like low global oil prices, global warming and the rise of violent extremism. But all acknowledged that keeping government responsive to its citizens remains crucial. (AP Photo/Kamran Jebreili)

Oil supply seen outpacing demand, capping price

PARIS (AP) — The International Energy Agency says oil supply is set to outpace demand this year, keeping a lid on any expected price increases.

The organization, which advises countries on energy policy, said in its monthly report Tuesday that global excess supply may reach 2 million barrels per day during the first quarter, and a further 1.5 million barrels a day in the second quarter. Further stock-building of 300,000 barrels a day is forecast in the second half of the year.

The IEA said “if these numbers prove to be accurate, and with the market already awash in oil, it is very hard to see how oil prices can rise significantly in the short term.”

After heavy losses Monday, the U.S. benchmark for crude was up 61 cents at $30.30 a barrel.

In related news, Global oil production cash negative at current prices.

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