IEA: Oil market may rebalance faster if OPEC sticks to target - RTRS

The International Energy Agency (IEA) said on Tuesday, global oil markets could rebalance quickly if OPEC and Russia agree to a steep enough cut in production, Reuters reports.

In its August report, the IEA maintained 2017 global oil demand growth forecast at 1.2 mln bpd, while slashed its 2016 forecast cut by 40kbpd to 1.2 mln bpd.

The IEA noted, "Even with tentative signs that bulging inventories are starting to decline, our supply-demand outlook suggests that the market -- if left to its own devices -- may remain in oversupply through the first half of next year. If OPEC sticks to its new target, the market's rebalancing could come faster."

"At this stage, it is difficult to assess how the OPEC supply cut, if enforced, will affect market balances," the agency added.