IEA says hopes of higher, stable oil prices could be dashed quickly

Crude oil at $60/bbl not the 'new normal' - IEA

Oil market could tip out of balance on rising non-Opec production

The IEA echoed that view, saying it expects the U.S.to see a resurgence in its oil and gas industries and become the world's biggest net exporter by the end of the 2020s.

The predictions come from the International Energy Agency's annual energy forecast.

The second development, which has already dented the Canadian oilpatch, is the rise of US tight oil and gas that is taking dollars and focus away from the Western Canadian industry.

The IEA noted that output by the Organization of the Petroleum Exporting Countries was down by 830,000 bpd year-on-year in October, although demand for the group's crude is expected to fall to 32.6 million bpd in the fourth quarter of this year and to 32.0 million bpd in the first quarter of 2018.

Oil fell by more than $1 in morning trading in NY after the International Energy Agency reported that recent increases in the oil price and milder-than-normal weather had dampened demand growth.

Investors increasingly opted not to bet on higher oil prices, following a report from the International Energy Agency showing it expects rising USA shale oil and gas production to at least be among the biggest gains in the history of the industry. If the standards stay at today's levels, the US would remain a net oil importer in 2040. OPEC says that "The global economic growth dynamic has continued its broad-based and relatively strong momentum", OPEC said.

Crude oil markets are expected to be oversupplied in the current quarter and going into 2018, the IEA said.

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The IEA said planned and unplanned disruptions from OPEC may be offset elsewhere, however.

At the same time, the renewable energy sources will become more important.

"Electric vehicles (EVs) are in the fast lane as a result of government support and declining battery costs but it is far too early to write the obituary of oil, as growth for trucks, aviation, petrochemicals, shipping and aviation keep pushing demand higher".

That will keep prices down and help make the United States a net exporter of oil - in addition to gas - by the late 2020s.

Opec said in the latest edition of the World Oil Outlook forecasts that oil would supply just over 27 per cent of worldwide energy needs in 2040, while natural gas will see its share at slightly more than 25 per cent.

"The oil market should be able to find a longer-term equilibrium, with the oil price in a range of $50-70 a barrel", the agency said.

After an upbeat performance last week, oil prices edged lower for a second day Tuesday.

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