More OPEC is oil needed to steady markets, where a bull run in oil prices has been driven by fundamentals, and emerging markets are set to stoke demand and keep prices above $100 a barrel, the IEA said Thursday. The International Energy Agency in its latest monthly report dropped its forecast for non-OPEC oil supplies this year by 0.4 million barrels per day (mbd), but said there are indications that members of the oil cartel are increasing output. IEA Executive Director Nobuo Tanaka, speaking at the presentation of the report in Saint Petersburg, said "the question is how fast and how much they can do." Last week, the IEA expressed disappointment with OPEC's decision not to boost output quotas given persistently high prices, supply shocks and rising seasonal demand, which it said threatened to undermine economic recovery. It urged OPEC producers to pump above quota, and its latest monthly data noted that the 11 cartel members in the quota system produced 26.50 mbd, an increase from 26.38 mbd in April, and considerably above the 24.84-mbd target. "If the current price level continues, it will be at the detriment of the global economic recovery," added Tanaka. World oil prices rebounded slightly following the publication of the report and as traders went bargain hunting following losses the previous day, analysts said.

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