Global oil market nearing balance, says IEA

The global oil and gas market – hit by almost three years of oversupply – is close to reaching an equilibrium amid falling crude inventories among developed countries, the International Energy Agency (IEA) said on Thursday.

Supply in Organization for Economic Cooperation and Development (OECD) countries dipped by 17.2Mb in March, according to preliminary data, as producers pumped less following last November's output reduction pact, IEA said in its monthly report.

"It can be argued confidently that the market is already very close to balance," the Paris-based body said.

However IEA added that it expected output to rise again outside the OPEC exporters group, with projected growth of 485,000b/d this year.

Global demand growth of 1.3Mb/d is predicted this year, a second successive year-on-year decline, reflecting "subdued gains" in Russia and India, and weak activity in OECD countries, the report said.

IEA forecast annual growth of 1.15Mb/d in global refinery throughput in the second quarter following a flat performance in Q1.

"Refinery crude demand will surge by 3.5Mb/d between March and July, with most of the increase coming from Atlantic basin refiners and the Middle East," it said.