International oil prices rose on Friday after a U.S. Navy ship destroyed an Iranian drone in the Strait of Hormuz, fueling tension in the Middle East.
In future, a lot of potential supply could come to the market from places like Iran, Iraq, Libya, Nigeria and Venezuela, if their various challenges can be overcome.
Oil prices fell by 1 percent on Wednesday, continuing Tuesday’s slide after the International Energy Agency cast doubts over the past few months’ narrative.
The Organization of Petroleum Exporting Countries (OPEC) has a compliance rate with their output cut pledges of about 86 percent.
Global supply and demand for crude oil will be largely balanced next year.
Oil prices steadied on Thursday, holding on to most of their recent gains after forecasts for stronger oil demand by the International Energy Agency (IEA).
World oil demand will grow more than expected this year, helping to ease a global glut despite rising production from North America and weak OPEC compliance with output cuts.
OPEC's compliance with production cuts fell in June to its lowest levels in six months as several members pumped much more oil than allowed by their supply deal.
The global oil market is rebalancing and the pace at which supply and demand are falling into line is picking up.