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On Thursday, prices of crude steadied as the International Energy Agency or IEA announced that 2016 would see the largest fall in production by non-OPEC producers in the past 25 years, which will help to rebalance the oil market that has been plagued by oversupply.
Brent crude futures pulled back 7 cents per barrel at 9:00 GMT to $45.72. Futures for U.S. crude were lower by 4 cents to $44.14.
Both crudes are up close to 70% in value from the lows they reached during January and February.
However, the drop in overall supply from some oil producers could be offset due to the increased production in nations such as Iran and Russia.
The energy minister of Russia said his country might push its production of oil to new historic highs, while Iran reconfirmed its intention of reaching a 4 million barrels a day output, after a deal to freeze the output by global producers collapsed and the world’s largest producer Saudi Arabia threatened to produce more crude to flood the market.
Nigeria is scheduled to have talks with Iran, Saudi Arabia and other oil producers this May hoping to come to an agreement on a freeze in output at the next meeting of OPEC in June, the oil minister from the West Africa country said to reporters.
Earlier his week, the U.S. dollar hit its low of 10 months against some currencies that are commodity related.
The entire recovery of the oil prices has been pushed by supply being frozen and supply being price sensitive and the levels are back again were some producers are able to breathe again, said one industry analyst.
BNP Paribas the French bank said any hope of rebalancing the market from its current surplus of oil relied on a predicted drop in oil production in the U.S.
The bank said the U.S. represents the bulk of 2016 non-OPEC oil supply contraction of 700,000 barrels daily that has been forecast.
If the U.S. oil supply drop proves to be insufficient to tighten overall balances, then the price of oil will stay low.