The oil market looks set to rebalance earlier than expected as OPEC members cut production, according to a report from UBS.
OPEC oil output has reduced significantly since the production-cut agreement made in November. Saudi Arabia has reportedly cut production by 160,000 barrels per day (bpd), while Kuwait and Qatar have both cut down 20,000 bpd.
Production cuts elsewhere look set to speed up the pace at which the oil market supply and demand will balance, leading UBS to revise its forecasts for rebalancing from the second quarter of 2017 to the first.
"Incorporating the IEA's (International Energy Agency) baseline demand revisions would, all else equal, bring forward our projected rebalancing from 2Q17 to 1Q17," said UBS analysts Jon Rigby, William Featherston and Joseph Head in the report out today.