The price of oil has recovered some lost ground after the International Energy Agency (IEA) cut its estimate for oil supply in 2015.
In its monthly forecast, the IEA said oil supply from producers outside of the Organisation of Petroleum Exporting Countries (Opec) in 2015 would be 350,000 barrels per day lower than it expected in December.
The agency said while “a price recovery - barring any major disruption - may not be imminent, but signs are mounting that the tide will turn”.
The slower growth in non-Opec supply, now expected to be 950,000 barrels per day, means total daily production from non-Opec countries and companies will be 57.5m barels per day this year.
However, the IEA said the supply from Opec would rise marginally to 30.5m barrels per day.
The agency also poured cold water on expectations for a huge rise in demand due to the low oil price as it left its December prediction of 0.9m barrels per day demand rise in 2015 unchanged.
At the time of writing, the price of brent crude had risen by 2.8 per cent today, closing back in on $50 per barrel.
