PARIS – The International Energy Agency says OPEC’s plan to cut production and support prices are likely to be undone by increased output in non-OPEC countries like the U.S.
If correct, that could keep a lid on oil prices as a glut of supply grows despite the efforts of countries in the OPEC cartel and allies like Russia to limit production.
The IEA said in its monthly oil report Wednesday it expects non-OPEC production to grow 700,000 barrels daily this year and 1.5 million barrels next year, “which is slightly more than the expected increase in global demand.”
It said it “makes sobering reading for those producers looking to restrain supply.”
The U.S. benchmark for crude fell 51 cents to $45.94 a barrel on Wednesday.