Opec 'Mission Accomplished' as oil glut vanishes, says IEA

Narendra Modi says efforts to artificially distort oil prices are detrimental, calls for responsible pricing

While Syria isn't a major oil producer, the wider Middle East is the world's most important crude exporter and tension in the region raises the prospect of supply disruptions, analysts said.

Light, sweet crude for May delivery recently was up 31 cents, or 0.5%, to $67.38 a barrel on the New York Mercantile Exchange, the highest level since 2014.

The Organization of Petroleum Exporting Countries (Opec) is on the verge of "mission accomplished" in its quest to clear the global oil glut that caused the worst industry downturn in a generation, reported Bloomberg, citing the International Energy Agency said.

In its closely watched monthly oil-market report Friday, the IEA said it still expects the world's appetite for oil to grow by 1.5 million barrels a day in 2018, helping to partly offset surging USA shale-oil growth.

The price of oil was also supported by a drop in production by the Organisation of the Petroleum Exporting Countries (Opec) and Russian Federation, as they continued to comply with a 2016 deal that was reached in Vienna after prices crashed amid a global glut, the IEA said in the report.

A market report from the IEA said the impact of USA oil production is limited by pipeline constraints, while "more than a second Saudi Arabia" has been added to the OPEC-led effort since it began, making the markets tighter in the Organization for Economic Cooperation and Development.

Opec and non-Opec nations including Russian Federation signed a landmark deal to cut oil production at the beginning of 2017 in order to prop up global oil prices, and late previous year they extended their agreement through 2018.

OPEC, Russia and several other non-OPEC producers began to cut supply in January 2017.

"We have seen an accelerated shrinkage of stocks in storage from unparalleled highs of about 400 million barrels to about 43 million above the five-year average", Barkindo said.

"There is growing confidence that the declaration of cooperation will be extended beyond 2018", Barkindo told Reuters.

The IEA also warned that should the tariff announcements by Washington and Beijing give way to a trade war, global oil demand and the broader economy may suffer. Opec meets in Vienna in June to decide on its next course of action.

Barclays said that geopolitical events could keep Brent prices elevated above $70 in April and May, but a downward correction was possible in the second half of the year. Saudi Arabia crude oil production decreased to 9.907 million bpd.

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