OPEC countries complying with agreed output cuts: IEA

The reductions took effect January 1, and the oil producers will reconvene after six months to evaluate the results of the deal.

Even as energy guru and IHS vice chairman, Daniel Yergin, suggests that the worst is over for the oil prices as investments are drying up, the rivalry between the "Shale and the Shaikh" is not yet over, given Trump's obsession to fossil fuels and his constant denial to climate change concerns.

The Sunni and the Shiite world want either to grow and diversify or recover from the long season of global sanctions - as is the case for Iran.

Despite the country's large natural gas reserves, it still lags most other OPEC members in overall crude production.

But this time is different: Saudi Arabia exceeded its promised reduction of 490,000 barrels per day by 70,000 barrels.

The IEA said it expects "significant increases in production in, for example, Brazil, Canada and the US whose combined output is expected to grow by 750 kb/d in 2017".

We remain very bullish oil prices and believe we could see $70 WTI by Q3 2017.

Last year, more than 50,000 oil workers were fired across the world, added Venezuelan president.

As part of the coordinated OPEC-non-OPEC supply cut, Russian Federation has pledged to gradually reduce production by 300,000 bpd between January and June. Libya raised its output by 700,000 bpd between December and January, according to IEA data, while Nigeria increased production 500,000 bpd.

The overhang is nearly evenly split between crude and liquids on one side and oil products on the other.

The oil market would be re-balanced when global inventories, now near record highs, approached their five-year average level, Al Sada said.

They throttled oil output by one million barrels per day to 32.1 million bpd in January.

However, the solution to the oil market's imbalance still rests heavily on United States shale producers.

Oil production in countries outside the Organization of the Petroleum Exporting Countries (OPEC) is projected to rise by 0.4 million barrels a day this year, the report said.

Worldwide large cap companies continue to bring down operating costs, suggesting more production will be achievable around current prices.

In a note to clients analysts at Capital Economics wrote: "While the outlook for for palladium is more encouraging, we expect the recent rally in the prices of precious metals to lose momentum amid uncertain demand".

"We had constructive talks with Iranian oil officials regarding the global oil market as well as strategies to monitor compliance with the OPEC deal, which marked the first such pact since 2001", Martinez said.

  • Eleanor Harrison