Investing.com – The IEA Tuesday stated the oil market was almost balanced within the first quarter.
“Re-balancing is basically here, and, within the short-term, is speeding up, the IEA stated in the monthly report.
The company stated if OPEC output is maintained at 31.8 mb/d in Q2 this could imply a regular draw of 700,000 barrels.
However the Worldwide Energy Agency stated inventories might possibly not have came back to 5-year average in the finish of the season.
Saudi Arabia and Russia Monday backed a 9-month extension of the output cut deal to March the coming year.
A choice around the possible extension is anticipated in a meeting on May 25.
OPEC and non-OPEC producers have decided to cut output by 1.8 mb/d within the first half.
The IEA noted elevated output through the U.S. and possible greater production by Libya and Nigeria:
The Paris-based agency left its demand growth forecast with this year unchanged at 1.3 mb/d.
Brent crude was up .25% at $51.95 at 06:00 ET.