IEA questions OPEC’s statements on production

Oil prices were up slightly on Friday after the International Energy Agency issued a report that questioned the market’s ability to keep up with demand for oil products. In the report, the IEA said that the Organization of Petroleum Exporting Countries must increase output soon and criticized comments from OPEC officials that they do not need to hike production. The IEA predicts that demand will climb by 1.6 million barrels per day in June.

In early afternoon trade on the New York Mercantile Exchange, June contracts for West Texas Intermediate crude were 19 cents higher to $62 per barrel, while in London Brent crude for June delivery added 81 cents to $66.60 per barrel. July gasoline futures on Nymex held virtually steady, at $2.33 per gallon, but July heating oil gained 2 cents to $1.89 per gallon. Natural gas was also higher, up 22 cents to $8.10 per million British thermal units.