Global oil prices may remain under pressure this year given the weaker demand outlook and stronger than expected production from Iran and the US, the International Energy Agency says.
Attempts by Opec states and other aligned producers to "rebalance" the market by slowing the rise in global stockpiles may deliver only gradual results, the Paris-based agency said.
While Opec and 10 other producers - including Russia, Mexico and Kazakhstan - have pledged to cut production by almost 1.2 million barrels a day for the next six months, the waivers the US granted on its sanctions against Iran saw the republic's exports increase to about 1.3 million barrels a day in December.
The decline in Venezuelan production has also slowed, while more growth is expected in the US where liquids production increased by an "incredible and unexpected" 2.1 million barrels a day in 2018, the IEA said.
"While the other two giants voluntarily cut output, the US, already the biggest liquids supplier, will reinforce its leadership as the world's number one crude producer," the agency said in its monthly report on global oil markets. "By the middle of the year, US crude output will probably be more than the capacity of either Saudi Arabia or Russia."