Breathing space” in global crude oil markets ushered in by U.S. shale oil output doesn’t mean the glut will last forever, the IEA said in a Wednesday report. The International Energy Agency said in its annual report oil supplies rise globally to 104 million barrels per day by 2040. The poles of demand, meanwhile, shift to Central Asia and the Middle East, which eventually take over after Chinese and U.S. demand levels out. IEA Chief Economist Fatih Birol said there are challenges ahead in terms of meeting expected global oil demand despite recent trends from North America. “The apparent breathing space provided by rising output in the Americas over the next decade provides little reassurance, given the long lead times of new upstream projects,” he said in a statement.
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