IEA cuts global oil demand forecast

Baku. 13 September. REPORT.AZ/ Global oil demand growth is faltering and oil production is stabilizing, providing a recipe for the global glut of petroleum and its products to continue through much of next year, Report informs referring to the Kommersant, the International Energy Agency (IEA) said.

The IEA’s closely watched monthly oil-market report marked an abrupt shift for an agency that a month ago said the world’s oil glut had begun disappearing. The Organization of the Petroleum Exporting Countries also surprised the market this week with a report that oil production outside the cartel was proving more resilient than expected.

The agency downgraded its global oil-demand predictions by about 100,000 barrels a day for this year, although it is growing by 1.3 million barrels a day. It also reduced the forecasts by about 200,000 barrels a day in 2017, with consumption increasing more slowly at 1.2 million barrels a day. The tapering of demand growth comes despite oil prices remaining below $50 a barrel for much of the year, over 50% below 2014 levels.