Global oil demand growth is forecast to slow to 1.2mn barrels per day (mb/d) in 2016, from an average 1.4 mb/d this year, the IEA Oil Market Report for July has revealed.
World oil demand growth appears to have peaked in the first quarter at 1.8 mb/d and will continue to ease throughout the rest of 2015 and into 2016 as temporary support fades, said the report.
Global oil supply surged by 550 000 barrels per day (550 kb/d) in June, on higher output from both OPEC and non-OPEC producers.
At 96.6 mb/d, world oil production was an impressive 3.1 mb/d higher than a year earlier, with OPEC crude and natural gas liquids accounting for 60% of the gain. Non-OPEC supply growth is expected to grind to a halt in 2016, as lower oil prices and spending cuts take a toll.
OPEC crude supply rose by 340 kb/d in June to 31.7 mb/d, a three- year high, led by record high output from Iraq, Saudi Arabia and the United Arab Emirates. OPEC output stood 1.5 mb/d above the previous year.
The “call on OPEC crude and stock change” for 2016 is forecast to rise by 1 mb/d, to 30.3 mb/d.
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