Oil price rally may start to ease: IEA

The International Energy Agency (IEA) said Tuesday a reprieve from soaring oil prices may be on the horizon as output increases.

Shortages of natural gas and coal have triggered a switch to oil, boosting demand for crude and fuelling a rise in prices.

Last month, the IEA, which advises governments on energy policy, said oil prices were “scaling multi-year highs.”

But on Tuesday, it sounded a note of optimism, saying that tide may be turning.

“The world oil market remains tight by all measures, but a reprieve from the price rally could be on the horizon,” the Paris-based agency said.

“It cautioned however that was not because demand for high-polluting oil was decreasing, “but rather due to rising oil supplies.”