Global Oil & Gas: IEA downgrades demand…again

Posted on October 12, 2016 by Mozambique Resources Post

Oil Barrels with Red Arrow isolated on white background. 3D render — IEA also said the world remains flush with oil

In its October Oil Market Report, the IEA said that demand continues to soften, with a deceleration underway in China. The energy agency lowered its 2016 oil demand growth estimate to 1.2 million barrels per day, down from 1.3 mb/d in September and 1.4 mb/d in August.

At the same time, the IEA said the world remains flush with oil, as OPEC has succeeded in ramping up production to record levels. “Left to its own devices”, the IEA says, the oil market “may remain in oversupply through the first half of next year.

If OPEC sticks to its new target, the market’s rebalancing could come faster.”(source: Oilprice.com)