“OECD demand growth continues to be stronger than expected, particularly in Europe and the U.S.,” said the IEA. “Based on recent bets made by investors, expectations are that markets are tightening and that prices will rise, albeit very modestly.”

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Advances in U.S. shale oil production technologies are contributing the to supply surplus and weighing on any oil price gains. It has become much cheaper for the upstart U.S. shale producers to extract oil out of the ground, but the growth rate of U.S. oil product has also recently slowed.

“On the supply side, global oil output fell by 0.72 million bpd in August due to unplanned outages and scheduled maintenance in OPEC member Libya as well as non-OPEC states such as Russia, Kazakhstan, Azerbaijan and Mexico, as well as in the North Sea,” according to Reuters.

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