IEA Sees Oil Market Rebalancing After OPEC Output Reduction Deal

IEA Executive Director Fatih Birol says that the International Energy Agency is witnessing the oil market rebalance after producers started implementing the deal to reduce output.

HOUSTON (Sputnik) — The International Energy Agency (IEA) is witnessing the oil market rebalance after producers started implementing the deal to reduce output, IEA Executive Director Fatih Birol told Sputnik on Monday.

"We are seeing that we are moving to the rebalancing of the markets. And we will see how the producing countries will decide [on extending OPEC, non-OPEC output deal]," Birol said on the margins of CERAWeek energy conference in Houston, Texas.

In November 2016, the OPEC states reached an agreement to cut oil production by 1.2 million barrels per day for the first half of 2017 to support the global oil prices. The accord was also supported by 11 non-OPEC states, including Russia and Mexico, which promised to reduce their oil output by 558,000 barrels per day.

The deal went into force on January 1 and was reached for a six-month period with a possibility to extend it.

According to the OPEC's monthly report made in February, the global oil production was reduced by more than 1 million barrels per day in January.