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OPEC Deal to Create Oil-Supply Deficit Next Half, IEA Says

  • Stockpiles to shrink by 600,000 barrels a day as producers cut
  • Russia to gradually implement the reduction pledged on Dec. 10
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IEA Sees OPEC Deal Causing Oil-Supply Deficit in 2017

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Global oil markets will swing from surplus to deficit in the first half of 2017 as OPEC and other producers follow through on an agreement to cut supply, according to the International Energy Agency.

Oil stockpiles will decline by about 600,000 barrels a day in the next six months as curbs by OPEC and its partners take effect, said the agency, which had previously assumed inventories wouldn’t drop until the end of 2017. Russia, the biggest producer outside OPEC to join the deal, will gradually implement the full reduction it promised, according to the IEA.