Paris - A recent rebound in oil prices is built on flimsy foundations, the International Energy (IEA) Agency warned on Friday, with another sharp fall possible and few signs that cheap fuel was giving growth a real boost.
Oil prices plummeted by 60% between June and January, but have since come off six-year lows and stabilised somewhat, with London's benchmark Brent trading around $60 per barrel and WTI in the United States fluctuating around $50 per barrel.
"Behind the facade of stability, the re-balancing triggered by the price collapse has yet to run its course, and it might be overly optimistic to expect it to proceed smoothly," said the Paris-based IEA, which advises energy consuming nations.