IEA chops oil de­mand fore­cast

Financial Mirror (Cyprus) - - FRONT PAGE -

The In­ter­na­tional En­ergy Agency chopped its fore­cast for oil de­mand in its Septem­ber re­port.

“Global oil de­mand growth is slow­ing at a faster pace than ini­tially pre­dicted,” the newly re­leased IEA Oil Mar­ket Re­port (OMR) for Septem­ber in­formed sub­scribers.

“For 2016, a gain of 1.3 mln bpd is ex­pected – a down­grade of 0.1 mln bpd on our pre­vi­ous fore­cast due to a more pro­nounced 3Q16 slow­down. Mo­men­tum eases fur­ther to 1.2 mln bpd in 2017 as un­der­ly­ing macroe­co­nomic con­di­tions re­main un­cer­tain.”

Mean­while, world oil sup­plies fell by 0.3 mln bpd in Au­gust, dragged lower by non-OPEC. At 96.9 mln bpd, global oil out­put was 0.3 mln bpd be­low a year ago, but near-record OPEC sup­ply just about off­set steep non-OPEC de­clines. NonOPEC sup­ply is ex­pected to re­turn to growth in 2017 (+380,000 bpd) fol­low­ing an an­tic­i­pated 840,000 bpd de­cline this year. OPEC crude pro­duc­tion edged up to 33.47 mln bpd in Au­gust – test­ing record rates as Mid­dle East pro­duc­ers opened the taps.

Kuwait and the UAE hit their high­est out­put ever and Iraq lifted sup­plies. Out­put from Saudi Ara­bia held near a record, while Iran reached a post-sanc­tions high. Over­all, OPEC sup­ply stood 930,000 bpd above a year ago.

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