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- International Energy Agency upgrades its oil demand forecasts
International Energy Agency upgrades its oil demand forecasts
The International Energy Agency (IEA) released its monthly report on Wednesday. The agency upgraded its oil demand forecasts. The IEA expects global oil demand to expand by 1.6 million barrels a day this year, up by 200,000 barrels a day from its previous estimate.
Oil demand in 2016 is expected to be 1.4 million barrels a day.
The agency noted that oil oversupply will persist through 2016.
"While a rebalancing has clearly begun, the process is likely to be prolonged as a supply overhang is expected to persist through 2016 - suggesting global inventories will pile up further," the IEA said.
According to the IEA, low fuel prices lead to higher consumption.
The agency also said that oil supply declined by nearly 600,000 barrels a day in July, driven by lower non-OPEC output.
Non-OPEC oil supply growth is expected to fall to 1.1 million barrels a day this year and by 200,000 barrels a day in 2016, while OPEC oil supply is expected to increase to 30.8 million barrels a day in 2016, up 1.4 million barrels a day from 2015.
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