Commercial reserves of the OECD (Organization for Economic Cooperation and Development) countries dropped by 26.8 mln barrels in March to 2.819 bln barrels, according to the recent IEA report, TASS reports.
This is the lowest level of reserves since March 2015, and 214 mln barrels lower than a year ago. This level is also 1 mln barrels lower than the five-year average of reserves used by OPEC+ countries as a target for their output reduction deal.
The current level of commercial reserves covers the demand in 59.9 days, which is 1.6 days less than the five-year average.
The five-year average of reserves is used as an efficiency criterion for the OPEC+ agreement enforced in January 2017.
The participants of the deal are currently developing a new target for the agreement as the existing one has almost been reached. Particularly, the number of days, in which current reserves cover the demand, is viewed as an alternative.