Photo: Reuters/Ernest Scheyder

The International Energy Agency has increased its estimate for demand growth this year by 1.7% in a new report, amid stronger-than-expected demand from the US and Europe.

The impact of Hurricane Harvey is likely to be short-lived, Bloomberg writes, citing the report, but OPEC supplies have fallen for the first time in five months, helping push inventories in developed countries back toward average levels.

Though prices are still trading below US$50 a barrel, the IEA findings show producers are finally making headway in reducing glut.