On June 15, the US Energy Information Administration said global oil markets are expected to tighten in the third quarter of 2017, then loosen through 2018.

“Forecast world production of crude oil and other liquids in 2017 and 2018 was revised slightly downward in the June edition of EIA’s Short-Term Energy Outlook (STEO), which was issued after the May 25 announcement by the Organization of the Petroleum Exporting Countries of an extension to production cuts that were originally set to end this month,” the EIA said.

OPEC’s crude oil production target will remain at 32.5 million barrels per day through the end of the first quarter of 2018, the EIA said.

Given the extended production cuts, EIA now forecasts OPEC members’ crude oil production to average 32.3 million barrels per day in 2017 and 32.8 million barrels per day in 2018, down 0.2 million barrels per day and 0.4 million barrels per day, respectively, from the previous STEO.

According to the EIA, total OPEC liquid fuels production is also expected to be lower than previously forecast. However, continuing production growth in many non-OPEC countries is expected to moderate the pace of global liquid fuels inventory draws in 2017. EIA expects a small inventory build in 2018.