Ending OPEC’s output cuts in June will be surprising: IEA

The International Energy Agency’s (IEA) markets division chief on Wednesday said that the OPEC-led production cut deal is expected to continue until the end of this year, and an early termination in June would surprise the markets, Bloomberg reported.

“It would be surprising to see OPEC ending the cuts deal in June,” said Neil Atkinson, head of International Energy Agency’s markets division.  

The oil market is expected to move from surplus into a small deficit after Q1 2018 but it will be fairly balanced through year, he added. Oil demand growth is forecast to be “solid” in 2018.

OPEC and 10 other oil producers, including Russia, have agreed to reduce output in a bid to rebalance global oil markets and boost prices.

The deal, which has already seen two extensions, currently runs until the end of 2018.