August oil report dims 2017 forecast
11 Aug 2016
The global demand for oil will slow to 1.2 million barrels per day (bpd) next year, according to the latest figures from the International Energy Agency (IEA).
The IEA’s Oil Market Report for August, which sees expectations drop from those highlighted in July, suggests the slow in demand will be the result of a dimmer microeconomic outlook.
The outlook for 2016, which sits at 1.4 million bpd, is unchanged, the report finds.
Meanwhile, the price of crude oil has hovered around $45 per barrel throughout much of the month. The report puts this stagnation down to a global oversupply, which had threatened to push oil prices below $40 in July.
According to the report, global oil supply rose by about 0.8 million bpd in July, as both OPEC (Organisation of the Petroleum Exporting Countries) and non-OPEC production increased.
Non-OPEC production is forecast to drop by 0.9 million bpd this year before rebounding by 0.3 million bpd in 2017, the report adds.
