Oil prices have moved closer to levels justified by supply and demand fundamentals but should still come down further, the head of the International Energy Agency (IEA) said.
Oil prices hit a 19-month low today at under $53 a barrel this morning.
"I think that we are on the way, right now, of coming back closer to the fundamentals," IEA executive director Claude Mandil said.
"I am happy the prices are going down. I think that it is not enough. Clearly it is not time to say the prices are too low or at the right level," he added.
The president of Opec said today that falling prices were a big concern and it would take further action if needed to stabilise the market, which it thinks is oversupplied.
Mr Mandil said he agreed with Opec's assessment that the market was well-supplied but added that buyers were still seeking extra stocks because of worries about bottlenecks in both production and refining sectors.