A Chinese official has confirmed the possibility of China meeting its yearly target of reducing its over congested steel and coal industry.

The Secretary General of the National development and Reforms Commission, Li Pumin, explained that the steel industry had met its October target of reducing production by 45 million tons.

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He noted that the coal industry has the chance to reduce its capacity by 250 tons before the year ends.

"At present, both sectors have made encouraging headway in cutting overcapacity, which helps to improve corporate profitability, optimize structure and balance market supply and demand," Li said. "Cutting overcapacity is one of the major tasks in the country's supply-side structural reform," he concluded.

In May, a special fund of 100 billion yuan ($14.68 billion) was reserved to assist both public and private companies in reducing the steel and coal overcapacity.

A report released on Thursday indicates that the oil market surplus may continue for a third year in 2017 if there are no output cuts from the Organization of Oil Exporting Countries, while increased productions from global exporters could trigger a massive supply growth.

The report by the International Energy Agency stated that the global oil supply increased by 800,000 barrels per day in October to close at $97.8 million, led by OPEC output and rising production from non-OPEC members such as Russia.

Tagschina, Steel and Coal Industry, NDRC, opec, International Energy Agency