No sharp rise expected in oil prices, IEA head says

ISTANBUL (AA) - The International Energy Agency (IEA) said on Friday that it did not forecast a sharp rise in oil prices which saw a recent increase after a plunge from an 11-month high.

IEA head Fatih Birol addressed reporters during an energy forum -- Sabanci University Istanbul International Center for Energy and Climate (IICEC) 7th International Energy and Global Forum in Istanbul.

"There is enough oil stock in the world and demand [for oil] in the normal course; thus, we do not forecast a sharp rise in oil prices," Birol said.

Noting that there was a great plunge in investments in new oil projects, Birol said, "For the first time in its history, oil investments dropped two years in a row. It means that hard days are ahead."

The recent climb in oil prices was due to falling crude oil inventories in the U.S., supply disruptions in Nigeria, and the decline in the value of the U.S. dollar.

Birol also said that growth in global gas demand would slow down to 1.5 percent annually from 2015 through 2021 as it faces greater competition in the power sector.

According to Birol, the global LNG export capacity has increased sharply while additional LNG capacity would be led by the U.S. and Australia over the next five years. Projects in Canada and east Africa could also move ahead if demands and prices recover.

According to the agency's 'Medium-Term Gas Market Report 2016,' global natural gas demand, which has increased by 1 percent since 2012, will continue to increase marginally over the next five years amid slowing primary energy demand growth and a decline in global energy intensity.

Gas demand stood at 3.55 trillion cubic meters (tcm) in 2015 while it is forecasted to rise to 3.62 tcm in 2017, 3.75 tcm in 2019 and 3.89 tcm in 2021.

Thus, demand is estimated to increase by around 340 billion cubic meters between 2015 and 2021.