Europe

Oil market stabilizing, further price rise unlikely _ report

In this Friday, May 13, 2016, photo, an overflow barrel holds oil near a storage tank on a South Texas ranch near Bigfoot, Texas. The agencies that regulate the oil and gas industry are running out of money just as some problems in the oilfields are worsening. Meanwhile, defunct companies are abandoning wells that are in danger of deteriorating. (AP Photo/Eric Gay)

In this Friday, May 13, 2016, photo, an overflow barrel holds oil near a storage tank on a South Texas ranch near Bigfoot, Texas. The agencies that regulate the oil and gas industry are running out of money just as some problems in the oilfields are worsening. Meanwhile, defunct companies are abandoning wells that are in danger of deteriorating. (AP Photo/Eric Gay)  (The Associated Press)

The International Energy Agency says that the global oil market is stabilizing after years of turbulence, but that significant further price gains are unlikely.

In its monthly report Tuesday, the Paris-based agency nudged up its estimate for global oil demand this year to 96.1 million barrels a day, up 0.1 million barrels from the previous prediction.

It notes that there are large volumes of production that are affected by shutdowns, particularly in Nigeria and Libya. When that oil starts returning to market, it will boost supply. Inventories are also high globally after three years of overproduction.

The IEA says "this is likely to dampen prospects of a significant increase in oil prices."

The price of oil was down Tuesday, with the Brent benchmark down 71 cents at $49.64 a barrel.