March 15 Global oil inventories rose for the
first time in six months in January, despite OPEC's production
cuts, but if the group maintains its output limits, the market
may tilt into deficit in the first half of 2017, the
International Energy Agency said on Wednesday.
The IEA said crude stocks in the world's richest nations
rose in January for the first time since July by 48 million
barrels to 3.03 billion barrels
"The actual build in OECD stocks in January reminds us that
it may be some time before global stocks start to fall," the
Compliance by the Organization of the Petroleum Exporting
Countries with its agreed output cut of 1.2 million barrels per
day in the first half of this year was 91 percent in February
and, if the group maintains its supply limit to June, the market
could show an implied deficit of 500,000 bpd, the IEA said.
"If current production levels were maintained to June when
the output deal expires, there is an implied market deficit of
500,000 bpd for 1H17, assuming, of course, nothing changes
elsewhere in supply and demand," the IEA said.
"For those looking for a re-balancing of the oil market the
message is that they should be patient, and hold their nerve."
(Reporting by Amanda Cooper; Editing by Susan Thomas)