IEA lowers demand forecast for oil
Higher prices and relatively mild early winter temperatures contributed to a downward revision to demand forecast, said the International Energy Agency (IEA) in its latest Oil Market Report. IEA has cut demand growth by 0.1 million barrels per day (mb/d) for this year and the next. “We now see increases of 1.5 mb/d in 2017 (or 1.6%), to 97.7 mb/d, and 1.3 mb/d in 2018 (or 1.3%) to 98.9 mb/d,” it said, adding that new and revised data confirmed a slowdown in world demand growth to +1.3 mb/d in the September quarter. The slowdown reflects relatively weak recent data and the impact of hurricanes Harvey and Irma on US oil demand, said IEA. Growth is expected to accelerate to +1.4 mb/d in the December quarter even as mild temperatures and rising prices will restrain demand.