Amid rising skepticism over whether OPEC – and potentially, Russia – can follow through on a proposal to cut their oil output, the International Energy Agency (IEA) said on Tuesday that the "real work starts now" with thorny issues surrounding the deal yet to be worked out.
Oil prices rallied on Monday after major oil producer Russia said it was ready to join OPEC in an output freeze deal loosely agreed in September when OPEC agreed to discuss cutting supply to between 32.5 million barrels a day (mb/d) and 33 mb/d. The deal is aimed at cutting the global supply overhang that has weighed on prices.
Details over who will bear the brunt of the cuts are due to be set by end-November but there is already growing wariness among market-watchers about how the deal can be implemented.
In its latest monthly oil report on Tuesday, the IEA said that "now the real work starts" when it comes to the deal.