Oil prices fell Wednesday after an unseasonal growth in crude stockpiles overshadowed the second-biggest weekly draw in US gasoline this summer.
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The IEA also predicted an end to the supply glut – even as official data on Wednesday showed another jump in USA crude inventories.
The Paris-based IEA predicted that global production will fall behind demand by almost one million barrels per day in the July-September period.
U.S. West Texas Intermediate (WTI) crude stood at $43.72 a barrel, up 23 cents after touching its highest level since July 25, at $44.17 per barrel.
Worldwide benchmark Brent crude futures were down 63 cents at $44.35 per barrel at 0839 GMT (4:39 a.m. EDT).
In its monthly oil market report, the agency reported lesser than expected demand for Crude oil in next year.
Oil prices entered a “bear” market last week, having fallen more than 20 percent from peak levels above $50 a barrel seen in early June.
Refiners around the world will process record volumes of crude this quarter to absorb all-time high production from several Persian Gulf producers, the IEA said.
The agency said that global oil supplies rose by 800,000 barrels a day in July on higher output from members of the Organization of the Petroleum Exporting Countries and producers outside the group.
Traders said excess supplies of crude and refined fuel products weighed on markets, and a proposed meeting by oil producers was unlikely to result in significant market tightening. Brent crude oil prices, representing the global benchmark, rose 1.5% to $45.52.
US oil production has dropped 12 percent to 8.445 million barrels a day from a record 9.61 million barrels a day in June a year ago, according to data from the Energy Information Administration.
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On Wednesday, the cartel said that Saudi Arabia, OPEC’s top exporter, raised its production to 10.67 million barrels per day in July, a record high. The output from the OPEC, increased by 150,000 barrels per day to 33.4 million barrels/day. In 2017, non-OPEC supply is expected to decline by 0.15 mln barrels daily, following a downward revision of 40,000 barrels a day.
