‘Oil market moving back into balance’

Paris: There are signs the global oil market is returning to balance and stocks of oil products in industrialised nations could soon fall below their five-year average, the IEA said Wednesday.

The International Energy Agency also said production by the OPEC cartel and its allies fell in August and compliance with their pact to cut supply to the markets increased.

OPEC and a number of other producers including Russia agreed last year on production cuts to ease a global supply glut, but prices haven´t risen much above $50 per barrel as compliance has been a problem.

But with oil demand perking up as well as hurricanes and regular summer maintenance knocking out some production, the International Energy Agency said it has seen some of that glut disappear. —