The International Energy Agency (IEA) said on Tuesday that growth in global oil demand is likely to increase at a slower pace in the coming months as heat hikes lower crude consumption, which could push the market towards a surplus in the first half of next year.
The Paris-based agency lowered its forecast for oil demand growth in its monthly report by 100,000 bpd for the current and next year to 1.5 million bpd in 2017 and 1.3 million bpd in 2018.
Middle East geopolitical tensions and intermittent supply cuts in areas such as Nigeria and Iraq have pushed oil above $ 60 a barrel for the first time since 2015 as global stocks fall, prompting many market watchers to raise their price expectations.
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The Paris-based agency lowered its forecast for oil demand growth in its monthly report by 100,000 bpd for the current and next year to 1.5 million bpd in 2017 and 1.3 million bpd in 2018.
Middle East geopolitical tensions and intermittent supply cuts in areas such as Nigeria and Iraq have pushed oil above $ 60 a barrel for the first time since 2015 as global stocks fall, prompting many market watchers to raise their price expectations.
SOURCE