The International Energy Agency says “there are signs that prices might have bottomed out” in the global oil market.
However, the Paris-based organization, which represents the world’s major oil-consuming nations, said Friday that the recovery in crude prices in recent days from multi-year lows does not mean that there will be a significant and sustained rebound in the short-term.
In its monthly oil-market report, the IEA says supplies dropped in February by 180,000 barrels per day. But it also noted a sharp slowdown in demand growth, particularly in the United States and China.
The international benchmark for oil was up 81 cents to $40.86 a barrel on Friday, having hit a low of $28.50 a barrel in January. The price was above $100 a barrel as recently as 2014.