A glut of oil, twinned with lackluster prices, indicates suppliers are following the right path as they seek to rein in production and relieve pressure on markets, the International Energy Agency (IEA) said on Tuesday.
In September, the 14 members OPEC agreed to set a cap on production to prop up prices.
These have been below 50 dollars per barrel much of the time since early 2015.
The IEA welcomed that decision in its monthly report, but said that details still need to be decided at the next OPEC meeting in November, which will have a significant impact on markets.
These include limits by country, with exports starting up again from Libya and production recovering in Nigeria.
It also said that the OPEC limit, set at between 32.5 and 33 million barrels per day, will also be impacted by the level of cooperation of non-OPEC producers like Russia.
Russian President Vladimir Putin said during a visit to Turkey on Monday that Russia is ready to join OPEC in limiting production of crude oil.
Declining demand growth has added impetus to the need for supply side rebalancing, with demand growth shifting from a five-year high in the third quarter of 2015 to a four-year low in the third quarter of 2016.
The IEA said that global output was 97.2 million barrels a day, up by 0.2 million barrels per day compared to a year ago.
It also said that demand is expected to grow 1.2 million barrels a day in 2016, though the growth rate of demand is slowing.
