IEA can’t maintain low oil prices: Rubin
The International Energy Agency’s decision to release oil from the strategic reserves of member countries has been criticized as a political, rather than economic, decision. But Jeff Rubin, author and economist, tells BNN that even worse—it will be ineffective in maintaining lower oil prices.
“We’re about a quarter or two quarters away from seeing world demand at one million to two million barrels per day more than production: how sustainable a situation is that?” he asks. “Other than continually drawing down inventories, we’re going to continue to see further price action.”
Rubin warns of the impact of triple digit oil prices on the global economy.
“It’s becoming quite problematic that when we have triple digit oil prices…the world economy doesn’t run very well,” he says “Unfortunately, releasing oil from the Strategic Reserves, while it may create the illusion we have more oil, the fact is, it’s just becoming more scarce.”