The IEA reiterated its position that global oil supply will grow faster than demand this year. The agency noted that global oil and product inventories have declined dramatically, and are very close to the five-year average, but that surging U.S. supply could tip the balance back into surplus.

Production is growing so fast that it resembles the original shale wave from years ago. This “second wave of growth [is] so extraordinary” that the supply growth from the U.S. alone could equal total global demand growth in 2018.

“[T]he underlying oil market fundamentals in the early part of 2018 look less supportive for prices,” the IEA wrote.