IEA ses oil market close to balance in second half of 2016

Crude oil markets worldwide would return close to balance in the back half of 2016, the rich world's energy watchdog said.

The world's oil glut would decrease by 200,000 barrels a day over in the second half of 2016, down from 1.5m in the first half, the International Energy Agency said in a report.

“There is no doubt as to the direction of travel for the supply-demand balance. There are signs that the much-anticipated slide in production of light, tight oil in the US is gathering pace.”

A meeting due to be held on 17 April in Doha, Qatar including several of the world's largest oil producers would have little influence on the market absent a proposal to reduce supplies, the IEA added.

As of 09:36 BST front month Brent crude futures were trading lower by 1.214% to $43.65 per barrel on the ICE.