The IEA and Opec are both confident that the oil production curbs agreed upon at the end of last year are hastening the rebalancing of supply and demand. In their latest monthly reports, both organizations see sizeable stock drawdowns in 2017, although they differ considerably on the extent and timing.

This shift is dependent on the parties to the 10 December Opec/non-Opec production agreement implementing a significant proportion of their planned output cuts. The agreement came into force on 1 January and is set to last for six months (MEES, 6 January). It will be reviewed at the next Opec meeting on 25 May, and potentially extended for a further six months. (CONTINUED - 1532 WORDS)