In its latest monthly report, the International Energy Agency offered a positive spin to the global oil markets after staying bearish on the commodity for a prolonged period of time. The IEA expects supply and demand to balance by the end of 2016 based on the assumption that OPEC output will rise to 33.2 billion barrels by the end of the third quarter.For the week ending May 6th, US crude oil stockpiles fell 3.41 million barrels, erasing the build up from the prior week of 2.8 million. NYMEX crude oil futures for June delivery are currently up over 2% for the day.
Also supportive of higher prices, the global oil markets were hit by a series of production disruptions spanning across Nigeria, Africa's largest oil producer, and wildfires in Canada which knocked out 1 million barrels per day worth of production from the markets.
Oil Gains on Supply Disruptions, Upbeat Outlook
Market Trends - 16/05/2016