Global oil markets are still struggling to clear a surge in supply from OPEC at the end last year, when members bolstered output before striking a deal to pump less, the International Energy Agency (IEA) said. Oil stockpiles across developed nations increased in January for the first time in six months after OPEC nations “relentlessly” raised production while finalizing their agreement, the agency said in its monthly oil report on Wednesday. While they are now implementing more than 90 percent of the curbs pledged to rebalance the market, the IEA predicted a smaller drop in inventories during the first half than previously amid a weaker assessment of demand growth. “We have a big backlog of unabsorbed oil,” said the Paris-based agency, which advises most major economies on energy policy. “The market is still dealing with a vast amount of past supply, which will take time to work its way through the system. For those looking for a rebalancing of the oil market, the message is that they should be patient.”
International Energy Agency (IEA)
