Oil markets adequately supplied, production soared over last 6 months: IEA

The energy watchdog, however, said that the oil industry is coming under strain as it copes with increasing global demand

Oil markets look "adequately supplied for now" after a big increase in production over the last six months but the oil industry is coming under strain as it copes with increasing global demand, the West's energy watchdog said on Friday.

The International Energy Agency said in its monthly report that the world's spare oil production capacity was already down to only 2 per cent of global demand, with further reductions likely to come.

"This strain could be with us for some time and it will likely be accompanied by higher prices, however much we regret them and their potential negative impact on