Tuesday 13 October 2015

Global oil demand growth to slow in 2016

Global oil demand growth to slow in 2016

The growth in global demand for oil is expected to slow to 1.2 million barrels per day (mb/d) in 2016.

That’s according to the International Energy Agency (IEA) which stated world oil supply was around 96mb/d in September.

Non-OPEC countries output accounted for under 40% of the 1.8mb/d annual increase.

The IEA’s monthly oil report added: "Lower oil prices and steep spending curbs are expected to cut non-OPEC output by nearly 0.5 mb/d in 2016."

Supply from OPEC countries increased to 31.72 mb/d as record Iraqi output saved a dip in Saudi supply.

The IEA stated: "A slowdown in forecast demand growth and slightly higher non-OPEC supply lowers the 2016 'call' on OPEC by 0.2 mb/d from last month’s Oil Market Report to 31.1 mb/d."

Written by

Bruna Pinhoni

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