Oil prices are heading for their third consecutive weekly loss as tensions in the Middle East and North Africa ease, but supply risks in the region for next year remain "extraordinarily high", the International Energy Agency (IEA) warned.
Markets are "more optimistic" about future supply, the energy watchdog said in its July report on Friday, as it predicted that global demand was set to climb to 1.4 million barrels a day (mb/d) in 2015, from 1.2 million mb/d in 2014.
But it warned that geopolitical uncertainty would remain very much in focus for the year ahead.
"The global economy is still expected to gain momentum in 2015. Supply risks in the Middle East and North Africa, not least in Iraq and Libya, remain extraordinarily high," IEA said, making its first forecasts for next year.
"The risks associated with the 2015 forecast are particularly high. Notably, geopolitical uncertainty in Iraq, Ukraine, Libya, Nigeria and Venezuela bring with them macroeconomic uncertainty."
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