Oil prices have increased after the International Energy Agency (IEA) announced that non-OPEC production will come down in 2016 and rebalance the oversupplied market.

Brent crude futures edged up 21 cents at $46.00 a barrel, while the US crude futures were 17 cents higher at $44.35, Reuters reported.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

According to IEA chief Fatih Birol, in the past two years low oil prices had reduced investment by about 40%, with declines witnessed in the US, Canada, Latin America and Russia.

"IEA said that growth in global oil demand will ease to around 1.2 million barrels per day in 2016."

The reduction in supply from some producers could be offset by increased production in Russia and Iran.

Russian Energy Minister Alexander Novak said that the country may increase oil production, while Iran reiterated its intention to reach output of four million barrels per day to regain market share after lifting of international sanctions.

See Also:

Nigerian oil minister told the news agency that the country may hold discussions with Saudi Arabia, Iran and other producers by May 2016 to reach an agreement on output freeze proposal at the next OPEC meeting to be held in June 2016.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In its Oil Market Report for April 2016, IEA said that growth in global oil demand will ease to around 1.2 million barrels per day (Mb/d) in 2016, below the 1.8Mb/d expansion in 2015.

The report noted that OPEC crude oil production fell by 90,000b/d in March 2016 to 32.47Mb/d as ongoing outages in Nigeria, the United Arab Emirates and Iraq more than offset a rise from Iran and higher flows from Angola.