13.07.202008:52 Forex Analysis & Reviews: IEA predicts an increase in demand by the end of 2020

Oil prices rose more than 1% on Friday after the International Energy Agency (IEA) predicted an increase in demand by the end of 2020.

Brent LCOc1 went up 59 cents, or 1.4%, to $ 42.94 a barrel, while American CLc1 rose 53 cents, or 1.3 %, up to $ 40.15 per barrel.

In Paris, the IEA predicted an increase in demand to 92.1 million barrels per day, which is 400,000 bpd higher than last month's forecasts.

"The resumption of Libyan exports will only increase the vulnerability of production restrictions agreed between OPEC + countries," said Jim Ritterbusch, CEO of Ritterbusch and Associates.

But the rising tensions between the US and China are putting pressure on the prices. On Friday, China said that it would retaliate to the US, in response to the sanctions imposed against Chinese officials in connection with the alleged human rights violations against the Muslim Uyghur minority.

US President Donald Trump said on Friday that he is not considering a "phase 2" trade agreement with China, as relations between Washington and Beijing are worsening due to the situation with the coronavirus pandemic and other problems.

According to oil minister Bijan Namdar Zangeneh, Iran is expanding its oil production capacity in the expectation that the final lifting of sanctions will allow it to regain its share in the global crude oil market.

"It's true that we have a bad result due to cruel and illegal sanctions, but it won't happen anymore," Zanganhe said. "We need to increase production in order to be able to return to the market fully and restore our share if necessary."

Other statements were made on the sidelines of an agreement on the development of Yaran. The Iranian company Persia Oil & Gas Industry Development Co has entered into an agreement with the state-owned National Iranian Oil Company for the operation and further development of the oil field.According to reports, the deal is expected to increase production by about 40 million barrels over a 10-year period. To implement the project, direct investments of $ 227 million and additional operating costs of $ 236 million are required.

Yaran - a field divided between Iran and Iraq - has approximately 550 million barrels of oil and is divided into northern and southern parts of Iranian territory.

Iran asked domestic companies to develop their oil and gas projects after US President Donald Trump withdrew from a nuclear agreement more than two years ago, which allowed foreign investors to return to the country's key energy sector in exchange for preserving Tehran's nuclear program.