The 10 December finalization of an agreement between key non-Opec producers and Opec to cut production by almost 1.8mn b/d is set to hasten the market’s rebalancing, the IEA and Opec both agree. Both have also revised upwards their forecasts for global demand in 2017 in their monthly oil market reports for December, further contributing to expectations that the world is finally about to start drawing down record oil stocks.

But the extent of the deal’s impact remains highly...