World oil demand is projected to grow by 1.4 mb/d in 2017, assuming normal weather conditions, an increase of 0.1 mb/d from the last prediction, according to the Oil Market Report issued by the International Energy Agency, IEA.

"On the demand side of the balance, global growth has been revised upwards for the third month in a row and for 2016, and it is now seen at 1.6 mb/d. Stronger-than-expected growth in Europe, partly influenced by colder weather in 4Q16, is a key factor alongside the long-term growth in China, India and non-OECD countries,'' the Paris-based agency said.

This month, observers of the oil market are focussing on the level of compliance, with the production cuts agreed by members of the OPEC and 11 non-OPEC countries, closely followed by interest in the expected recovery in the US light, tight oil production.

The IEA estimates that OPEC production in January was 32.1 mb/d and that the cuts achieved a record initial compliance rate of 90 percent, with some producers appearing to cut by more than required.