The Organization of the Oil Exporting Countries (OPEC) and its allies seem to have coped with their task of reducing global oil glut to 5-year average, the International Energy Agency (IEA) said on Friday.
The agency noted that maintaining the supply constraint could lead to overheating of the market.
Commercial oil reserves in the countries of the Organization for Economic Cooperation and Development (OECD) will decline to an average level of five years by May, according to the monthly review of the IEA.
According to the agency, commercial oil reserves in OECD countries in February fell by 26 million to 2.841 billion barrels, which exceeds the average level of five years by only 30 million barrels.
“It is not in our competence to declare that the participants in the OPEC + pact fulfilled their mission, but if our calculations are correct, then really, very similarly,” writes the IEA.
IEA retained the forecast for the growth of world oil demand at 1.5 million barrels per day in 2018 and left unchanged the forecast for growth crude oil extraction in countries outside the OPEC cartel at 1.8 million barrels per day.
According to the agency, OPEC oil production in March decreased by 200,000 barrels per day to 31.83 million barrels per day at the expense of Venezuela and African countries. The organization’s commitment to the terms of the global pact in the previous month was 163 percent.