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IEA warns of oil 'supply crunch' by 2020 with no capex

Contraction in global spending in 2015, 2016 and growing global demand may lead to a supply crunch

Amanda Cooper  |  London 

Global oil supply may struggle to match demand after 2020, when the pinch of a two-year decline in investment in new production could leave spare capacity at a 14-year low and send prices sharply higher, the International Energy Agency (IEA) said on Monday. Investors generally are not betting on a sharp rise in the price of crude oil any time soon, but the contraction in global spending in 2015 and 2016 and growing global demand means the world could well face a "supply crunch" if new projects are not soon given the go-ahead, the IEA said in its five-year "Oil ...

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First Published: Tue, March 07 2017. 04:31 IST