The IEA is good for one thing only, compiling data… their predictive skills ought be ignored.
“Davidson” submits
Tracking what some authority said over time provides a good means of assessing whether their analysis is valuable or not. The IEA in my opinion simply reacts to price change and does not provide much value to some one seeking fundamental analysis. The flip-flop the IEA just performed shows this.
It takes time to do this type of analysis on those making market predictions, but it is necessary to sort out the few who do offer good insight from those better characterized as ‘talking heads’. As recently as 2 ½ weeks ago the IEA forecasted low prices due to an uncontrollable glut in the oil (USO) (OIL) market.
IEA Says Oil Price May Have Bottomed as High-Cost Producers Cut
Crude Glut Could Take Years to Disappear, IEA Data Show
OPEC official won’t rule out additional steps to stabilize the market
IEA Sees Risk of World Drowning in Oil
Of course you’ll by the chart below the IEA calls for lower for longer (in Jan and Feb) and an endless glut of oil came at the bottom. Now that the price has rebounded, they make the bottom call.
