IEA chops oil demand forecast
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.