Initially, it had been planned that the deal to cut nearly 1.8 million barrels per day in production and agreed on December 10, will be effective in the first half of this year with possibility of rollover toll the end of 2017.
However, the 12 remaining OPEC members and other producers participating in the cuts have to agree to the extension during a meeting on May 25.
"This agreement aims to rebalance the global supply and demand by restoring the level of world oil reserve to the rate of the past five years", the report cited the minister as saying.
"According to our estimations what remains (of oil in storages - TASS) following the agreement will decline by around 100-120 mln barrels per day by July 1", he said, adding that "May and June (results) will be monitored".
"At 96.17 million barrels per day, output stood 90,000 barrels per day below a year ago, even as non-OPEC returned to growth", said the report.
"Of course, things will change elsewhere in the balance, and today the most closely watched data point on the supply side is U.S. crude production", the IEA said.
"Such is the diversity and dynamism of the U.S. shale sector that our numbers are likely to be a moving target as 2017 progresses". "As OPEC turned down the taps from record Q4, 2016 production, the average OPEC basket price of crudes rose from $47.59/b in Q4, 2016 to $52.03/b in Q1, 2017".
Oil's gains on Monday came after Saudi energy minister Khalid al-Falih and his Russian counterpart Alexander Novak said they had agreed to prolong an existing production cut deal by another nine months until March 2018.
The EIA (U.S. Energy Information Administration) estimates that Iraq's crude oil production fell by 5,000 bpd (barrels per day) to 4.4 MMbpd (million barrels per day) in April 2017-compared to March 2017.
"Growth was weaker than expected in the first quarter of 2017, however, with notable downward revisions seen in the U.S. (where demand is essentially flat), Germany, Turkey and India (where the effect of the currency reform lingers on)", said the IEA.
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