(Ecofin Agency) - The International Energy Agency (IEA) on Thursday revealed that Iran has helped the global oil market become stable by counterbalancing concerns caused by the troubles in Canada and violence in Nigeria through the unexpected increase in its oil production.

According to the Agency, stronger demand growth and global supply outages are helping to move the oil market closer towards stability. Oil production globally increased to 32.7 million bpd in April driven by Iran, as the country’s production rose more rapidly than expected after international sanctions were lifted.

IEA in its monthly report has predicted a sharp decline in global oil glut by the end of 2016. This drop is expected to stabilize the market which has been volatile since mid-2014.

“Any changes to our current 2016 global demand outlook are now more likely to be upwards than downwards,” the IEA said, citing strong global demand for gasoline, offsetting any weakness in fuels such as diesel.

Oil prices in the global market dropped last month due to the failure by oil producer to arrive at a decision to freeze or cut production, but rose after difficulties in Canada and Nigeria endangered output. Canada’s overall production has been hurt by a devastating wildfire in the oil sands town of Fort McMurray. In Nigeria, Shell has been forced to shut down the Bonny terminal exporting the country's Bonny Light crude and withdraw workers from the Eja facility after a deadly attack by militants on Chevron's Escravos oil and gas facility.

Meanwhile Libya is also facing a declining in output as a standoff among warring factions has stopped tankers from loading at the Hariga port.

But Iran’s growth has been exceptional. Oil output in April was close to 3.6 million bpd, exports reached 2 million bpd, compared to the 1.4 million bpd in March.

However, oil prices have regained to some extent this year to the $45 per barrel range, Associated Press reports.

Anita Fatunji