Evidence is showing that oil prices stability has started to pick up in and there is a chance of it rising up as per the International Energy Agency (IEA).
The agency said that what was assisting in curbing the glut was reduced output of oil in the US as well as some countries.
The IEA also added that increase in supply of oil from Iran is no longer as dramatic as it was feared it would be.
Since 2014, the oil prices have experienced a 70% plummeting with the price per barrel going as low as $27.
The IEA has the responsibility of coordinating the energy policies of industrialized nations. The agency reported that there would be 750,000 barrels in the non-OPEC output per day compared to the earlier estimate of 600,000.
The production from the US is expected to fall by 530,000 bpd in 2016.
Demand and supply
In recent years, there has been an increased oil production leading to higher supply.
At the same time, members of OPEC have not been willing to reduce the production of oil because they feared that they may lose market share while competing with other higher-cost producers.
These two important aspects were responsible for the tumbling oil prices towards the end of 2014 and throughout 2015.
The reduced oil consumption from China due to its failing economy was also responsible for the declining oil prices.
That has had its own economic difficulties as most oil firms announced that their profits fell forcing them to reduce billions of the investment plans that they had.
The agency said that oil demand in the largest oil consumer, USA, is expected to be flat this year.
Chinese demand is expected to go up by 330,000 bpd this year and this is lower than the 10 year projection of 440,000 bpd.