OPEC's effort to shrink huge global crude stockpiles may fail even if the cartel agrees to extend its agreement to pump less oil, the International Energy Agency warned on Tuesday.
Members of OPEC meet next week to discuss rolling over output cuts into the second half of 2017. Top producers Saudi Arabia and non-OPEC member Russia have already backed an extension through March 2018.
OPEC and 11 other exporting nations agreed last year to take 1.8 million barrels a day off the market in the first six months of this year. The goal is to reduce the amount of oil sitting in storage to the five-year average.
Thus far, the deal has not succeeded. Crude stockpiles in the 35-nation Organization for Economic Co-operation and Development reached a new all-time high in March, largely due to robust U.S. imports and maintenance at Northern Hemisphere refineries that dampened crude demand, IEA reported on Tuesday.