* Oil recovers 8 pct on Dec 26. in biggest rise for two
* IEA expects deficit in oil supply by Q2 next year
(Updates throughout, changes dateline, previous SINGAPORE)
* OPEC says has offset drop in sanctions-hit Iran exports
LONDON Oil prices rose on Tuesday, extending gains ahead of expected output cuts by producer cartel OPEC and a reduction in Canadian supply.
* U.S., Russia, Saudi output rises: https://tmsnrt.rs/2Rua0R8
* IEA cuts forecasts for oil consumption and demand for OPEC
LONDON Oil markets look "adequately supplied for now" after a big production increase in the last six months, but the industry is coming under strain, the West's energy watchdog said on Friday.
* Oil demand estimates cut for 2018 and 2019 by 0.11 mln bpd
LONDON Oil prices slumped to two-week lows on Thursday as global stock markets fell, with investor sentiment made more bearish by an industry report showing U.S. crude inventories rising more than expected.
LONDON Oil prices rose on Friday as U.S. sanctions on Tehran squeezed Iranian crude exports, tightening supply even as other key exporters increased production.