Amid expectations of a shortfall in supply, oil prices rise by about 2%

Oil prices rose by about 2 percent after the International Energy Agency announced that the market will witness a shortage of supplies due to differences between major producers over the amount of additional crude shipped around the world.

The agency expected withdrawals from global stocks in the third quarter of the year, and said that they are expected to be the largest in at least ten years. The Paris-based agency indicated withdrawals in early June from stocks in the United States, Europe and Japan.

The international benchmark Brent crude contracts ended the trading session up by $1.33, or 1.8 percent, to record at a settlement of $76.49 a barrel.

Meanwhile, US West Texas Intermediate crude contracts rose by $1.15, or 1.6 percent, to settle at $75.25 a barrel.

The market is generally in a stronger position, with demand recovering and the Organization of the Petroleum Exporting Countries and its allies withholding millions of barrels of supplies. It was expected that “OPEC +” would boost supplies, but discussions broke down last week without an agreement.

The agency said that oil prices will be volatile until the differences between the “OPEC +” members are resolved.

Source: “Reuters”