By Divya Chowdhury
DAVOS, Switzerland (Reuters) - The IEA expects oil markets to be in a "comfortable and balanced position" this year, despite Middle East tensions amid a rising supply and slowing demand growth outlook, its executive director Fatih Birol told the Reuters Global Markets Forum on Wednesday.
"If we don't see any major geopolitical surprises, I expect this year a comfortable oil market, a more balanced oil market," the International Energy Agency's Birol said on the sidelines of the WEF's annual meeting in Davos.
Birol added that the Paris-based IEA expects a significant increase in oil output from the United States, Canada, Brazil, and Guyana this year, just as global demand growth slows.
Attacks by the Houthis on ships in the Red Sea have forced many companies to divert cargoes around Africa, adding to journey times and costs.
The Iran-aligned Houthis say they are acting in solidarity with Palestinians during Israel's ongoing war with Gaza.
Birol noted that so far production has not been impacted by these disruptions. He said that he did not expect a major impact on oil prices, unless one or more major oil producing countries were to get directly embroiled in the conflict.
"I don't expect a major change in the oil price because we have an ample amount of oil coming in the market," he said.
Brent crude futures were trading 1.4% lower on Wednesday at $77.21 per barrel, and U.S. West Texas Intermediate crude futures (WTI) CLc1 were down 1.0% at $71.69. [O/R]
The IEA expects world oil demand to grow by 1.1 million barrels per day (bpd) in 2024. It expects non-OPEC supply growth to reach 1.2 million bpd next year.
The Organization of the Petroleum Exporting Countries (OPEC), forecasts demand growth of 2.25 million bpd in 2024.
"Moderate oil prices" would be good for economic growth in the context of high inflation rates, he said.
Birol highlighted elections in the United States and India, Middle East tensions, and climate and the clean energy transition as some of the key risks in the year ahead.
(Join GMF, a chat room hosted on LSEG Messenger, for live interviews: )