OPEC said that process should speed up, notably due to the sharp fall in oil prices.
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Brent futures were 24 cents lower $39.87 per barrel at 1340 GMT, having traded as high as $40.70.
Oil prices fell for a fourth day in a row on Wednesday after the market ignored an unexpected drawdown in US crude stockpiles to focus on a build in distillates, including diesel, that came in twice as large than expected.
USA crude futures were at $36.53 a barrel, down 23c and just above Thursday’s bottom of $36.38 – the benchmark’s lowest mark since February 2009.
“Concerns over further supply growth intensified after OPEC data showed that production from the member group rose 230,000 barrels per day to 31.7 million barrels per day, the highest level since April 2012”, ANZ bank said.
Thursday at the close, WTI yields 40 cents to 36.76 dollars on the New York Mercantile Exchange (Nymex).
According to the OPEC report, fall of oil supply to the global market is expected on all the countries of the former Soviet Union (FSU) in 2016.
The IEA said the pace of stock-building should roughly halve next year and that it was very unlikely that global storage capacity would be filled.
Producers are counting on global consumers to ratchet up demand for crude as they take advantage of low retail prices for gasoline and diesel.
“Storage levels may provide yet another check on reality”, the IEA said.
But the agency adds there is “evidence the Saudi-led strategy is starting to work”, referring to OPEC’s decision to maintain output to defend market share.
Global oil markets will remain oversupplied at least until the end of 2016 as demand growth slows and OPEC output booms, putting oil prices under further pressure, the International Energy Agency said on Friday. The ceiling, which has been set at 30 million barrels a day, has been breached routinely by the group.
Production from outside OPEC will contract by 600,000 barrels a day next year, compared with a surge of 2.4 million a day in 2014, the IEA predicts.
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Oil has slumped all this week after OPEC announced it was happy to keep flooding the market.
