IEA sees strong oil demand growth
london — Global oil demand will climb this year by the most since 2015, the International Energy Agency said, amid stronger-thanexpected consumption in Europe and the US
The IEA, which advises most major economies on energy policy, increased its estimate for demand growth in 2017 by 100,000 barrels a day to 1.6 million a day, or 1.7 per cent.
The re-balancing of oversupplied world markets is continuing, it said, with Opec supplies falling for the first time in five months and inventories of refined fuels in developed nations subsiding toward average levels.
“Demand growth continues to be stronger than expected, particularly in Europe and the US,” the Paris-based agency said in its monthly report.
The impact of Hurricane Harvey, which struck Texas last month, on global oil markets is “likely to be relatively shortlived,” the IEA said. Local stockpiles were at “comfortable” levels before the storm hit, while releases from government reserves and plentiful imports from Europe al- layed any shortage. Oil prices remain below $50 a barrel in New York, less than half the level traded three years ago, as the Organisation of Petroleum Exporting Countries and fellow producers struggle to clear a global glut despite cutting their output for almost nine months. Still, the IEA’s report shows producers are having some success in their goal of reducing bloated oil inventories back to typical levels.
Stockpiles of refined fuels in developed nations were close to their five-year average in July, and could fall to or below this level “very soon,” according to the IEA. Crude oil inventories were steady in the same month, when they typically increase. By 1021 GMT, international benchmark Brent crude was up 27 cents, or 0.5 percent, at $54.54 a barrel. US West Texas Intermediate (WTI) was up 38 cents, or 0.8 percent, at $48.61 a barrel.