Global oil demand growth to slow in 2016: IEA
[PARIS] The world's demand for oil is expected to slow in 2016 in response to a more pessimistic outlook for the global economy, the International Energy Agency (IEA) said Tuesday.
"Global demand growth is expected to slow from its five-year high of 1.8 million barrels per day in 2015, to 1.2 mb/d in 2016," the IEA said in its monthly oil market report.
That will probably keep oil markets oversupplied next year, especially with the expected arrival of Iranian crude.
"A projected marked slowdown in demand growth next year and the anticipated arrival of additional Iranian barrels - should international sanctions be eased - are likely to keep the market oversupplied through 2016," it said.
Citing the International Monetary Fund's recent downward revisions on global growth estimates by one-fifth of a percentage point, "projections for commodities demand logically require some trimming," the report said One surprise is the resilient oil demand in China despite its economic slowdown.
"Our preliminary August estimate posted a near double-digit percentage point gain in year-on-year terms despite the otherwise ailing macroeconomic backdrop," the IEA said.
AFP
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
Oil jumps, equities fall as Iran blasts fan Middle East fears
Gold set for fifth weekly gain as geopolitical risks buoy demand
Oil holds near 3-week low as US sanctions interrupt easing tensions
Seatrium unit ordered to pay US$108 million in arbitration over equipment supply contracts
BP reshapes its leadership team as some executives leave
BHP to decide on future of nickel business by August, trims met coal estimates