Crude oil prices’ downward spiral may be over, with production cuts outside of OPEC forecast to fall by 12 percent in 2016, according to the International Energy Agency.
Production in Organization of Petroleum Exporting Countries and outside the cartel fell in February, according to the agency. Meanwhile, the impact of Iran’s oil exports has been lower than the country forecast.
The preliminary data suggests that for the first time in a year, crude inventories actually shrank, the IEA reported.
The production cuts have contributed to a recent price increase. The U.S. benchmark price, West Texas Intermediate, is trading at around $38. Earlier this year, the price fell below $30 a barrel.
The IEA released its monthly oil market report Friday.
Still, the IEA told both Bloomberg News and The Wall Street Journal that though prices may have bottomed out, but that the agency could not say definitively that the worst is over.