Analysts at Bank of Tokyo Mitsubishi explained that the International Energy Agency has been suitably encouraged to state that oil prices may have bottomed out. Key Quotes: "The IEA expects production outside of OPEC to decline more sharply than initially expected by 750k barrels/day this year. Yet the IEA still expects supply to outstrip demand until 2017. Weaker global growth and the potential for higher prices to curtail expected production cuts should act to dampen upside for the price of oil. Recent developments are broadly consistent with our prior assumptions that the price of oil would bottom in the first of this year and rebound gradually heading into next year. The recent rebound has progressed a little quicker than we had expected posing some upside risks to our assumption that it will finish the year closer to USD50/barrel." "The futures market is even more sceptical that recent upward momentum will be sustained." For more information, read our latest forex news.