IEA report stated that the oil market is adequately supplied. Credit: wasi1370 from Pixabay.

Oil prices slip from their six-month high after the International Energy Agency (IEA) said that markets are ‘adequately supplied’, easing supply concerns.

Brent crude futures dropped 14 cents to $74.37 per barrel, while US West Texas Intermediate (WTI) crude futures slipped 33 cents to settle at $65.97 a barrel, Reuters reported.

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In the statement, the IEA said that ‘global spare production capacity remains at comfortable levels’.

With slowing global economic growth, the consumers and producers should take appropriate steps to prevent surge in oil prices, the statement added.

The market earlier soared over concerns that Organization of the Petroleum Exporting Countries (OPEC)-led output cuts and US sanctions on Iran and Venezuela may tighten crude supplies to the market.

“With slowing global economic growth, the consumers and producers should take appropriate steps to prevent surge in oil prices.”

Oil prices also jumped with the increase in US crude stocks. According to the American Petroleum Institute, crude inventories in the country rose by 6.9 million barrels last week, higher than anticipated.

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Earlier this week, the US asked all countries to stop Iranian oil imports from May 2019, ending all exemptions previously granted to a few countries. The announcement surged global oil prices to a six-month high.

The US is said to be working with Saudi Arabia to ensure stable supplies to the market. However, Saudi Energy Minister Khalid al-Falih told Reuters that output in the next month will not significantly vary with the production levels from the previous months.

He added that Saudi Arabia will continue to stick with the output quota previously decided with the supply-cut deal participants.