The oil price has pushed higher today after comments out of Iraq that called for OPEC production cuts to be extended to further boost the price.
Iraq's oil minister Jabbar Al-Luaibi said the production cuts should extended into the 2nd half of the year, and noted that Iraq was ready to make such a move and add to the 210,000 barrels a day reduction they have already agreed to.
It is not known at this stage whether some of the bigger OPEC members such as Saudi Arabia would back such a move, but the idea of further cuts may provide some support for the oil price in the nearest future,
"The idea that we can extend it would be supportive in the medium term. Statements from Saudi Arabia, OPEC's largest member, would be needed to push the price substantially higher” said Gene McGillian, head of market research at Tradition Energy.
"I think that has stopped some of the selling pressure that we opened with," he added
Oil prices will struggle to keep up with demand after 2020 unless production is ramped up across the globe by way of new projects the IEA said in their latest report.
Countries such as the US have ramped up production in recent times to take advantage of higher prices but it may not be enough unless investment levels also rise
“We are witnessing the start of a second wave of U.S. supply growth, and its size will depend on where prices go," Fatih Birol, the IEA's Executive Director, said in the report published Monday.
"But this is no time for complacency. We don't see a peak in oil demand any time soon. And unless investments globally rebound sharply, a new period of price volatility looms on the horizon," he added.