The International Energy Agency says oil production cuts agreed by OPEC and non-OPEC countries have helped to stabilize the price of oil following the recent 10 per cent drop in early March.
It said recently unplanned outages and rising political tensions in the Middle East have played a role in supporting the oil price.
However, the IEA said it expects production to grow again on a year-on-year-basis by May, with the main impetus coming from the United States where monthly data shows that output reached 9.0 mb/d in March, up from a trough of 8.6 mb/d in September 2016.
“We now expect that US production will be 680 kb/d higher at the end of the year than it was at the end of 2016, an upgrade to our previous forecast, the IEA said.
Meanwhile, it says new data shows weaker-than-expected growth in a number of countries, including Russia, India, several Middle Eastern countries, Korea and the U.S., where demand has stalled in recently months.
Shares of
Cenovus Energy Inc. (
TSX: T.CVE,
NYSE: CVE,
Forum) were among active stocks Monday, rising 1.47% to $14.47 on volume of 832,328.