Investing.com - The IEA Tuesday said the oil market was almost balanced in the first quarter.
"Re-balancing is essentially here, and, in the short-term, is accelerating, the IEA said in its monthly report.
The agency said if OPEC output is maintained at 31.8 mb/d in Q2 this would imply a stock draw of 700,000 barrels.
But the International Energy Agency said inventories might not have returned to five-year average at the end of the year.
Saudi Arabia and Russia Monday backed a 9-month extension of an output cut deal to March next year.
A decision on the possible extension is expected at a meeting on May 25.
OPEC and non-OPEC producers have agreed to cut output by 1.8 mb/d in the first half.
The IEA noted increased output by the U.S. and possible higher production by Libya and Nigeria:
The Paris-based agency left its demand growth forecast for this year unchanged at 1.3 mb/d.
Brent crude was up 0.25% at $51.95 at 06:00 ET.