The International Energy Agency (IEA) has warned it could take longer than anticipated for global oil markets to strengthen caused by a potential increase in Iranian exports and the surge in OPEC supply.
The forecast of 2015 global oil demand has been raised for April by 90,000 barrels per day to 93.6million barrels per day.
The IEA also said global supply rose by an estimated 1mb/d during March to 95.2 mb/d, as OPEC production recorded its highest monthly increase in nearly four years.
Year-on-year gains totalling a whopping 3.5 mb/d were split between OPEC and non-OPEC production.
OPEC production surged to 31.02 million barrels per day (bpd) in March, almost a two-year high, led by Saudi Arabia, Iraq and Libya.
The OMR “call on OPEC crude and stock change” was revised marginally higher for the current quarter, to 30.35 mb/d, above the group’s official production ceiling, but left unchanged for full 2015 from the March Report, at 29.5 mb/d.
The IEA had previously predicted that oil markers could rebalance in the second half of 2015, as North American supply growth slows and lower prices help boost demand.
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