OPEC+ needs to increase oil output: IEA

The OPEC+ producers’ group needs to increase oil supply to be able to bridge the ongoing gap between supply and demand and thereby lower price volatility, the IEA’s director said on Wednesday.

During a video interaction, International Energy Agency Executive Director Fatih Birol told a conference in Saudi Arabia that the oil bloc is lagging in reaching the output that they have agreed on. He called on the bloc to narrow the gap and provide more volumes to the market.

"There is a significant difference between the targets that OPEC+ countries set in terms of their production levels, and what is produced today," he said.

“Our latest oil market report shows that this gap is close to 1 million barrels a day,” said Birol. He explained that there is a significant difference between the targets the bloc has set and what they are producing today.

Many of the OPEC+ members are facing the challenge of bringing back the barrels they have committed to.  According to IEA data, the OPEC countries pumped 23.9 million barrels a day in January; they were pumping 24.6 million barrels a day. The organisation said that the gap between the supply and demand has reached 900,000 bpd.

The countries along with their alliances have agreed to increase production to 400,000 bpd each month since August.

On Wednesday, Brent traded at US $93.86 a barrel, up by 62 cents.