IAE Keeps World Oil Demand Growth Forecast for 2016 at 1.4Mln Barrels Per Day

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The International Energy Agency (IEA) has kept its forecast for global oil demand growth in 2016 at 1.4 million barrels per day while slightly revising its 2017 expectations downward by 0.1 million barrels per day, the IAE monthly Oil Market Report, released on Thursday, showed.

MOSCOW (Sputnik) — The IAE forecast is less optimistic than that of the Organization of the Petroleum Exporting Countries (OPEC). In Wednesday's monthly report, the cartel predicted 2016 daily demand to reach 94.26 million barrels while revising growth expectations upward slightly.

"Global oil demand growth of 1.4 mb/d for 2016, unchanged from last month’s Report, is expected to slow to 1.2 mb/d in 2017 as underlying support from low oil prices wanes. The 2017 forecast – still above-trend – is 0.1 mb/d below our previous Report due to a dimmer macroeconomic outlook," the report reads.

The world's daily demand for oil is thus expected to average at 96.3 million barrels this year before rising to 97.5 million barrels next year.

In this Dec. 22, 2014 file photo, an Iranian oil worker makes his way through Tehran's oil refinery south of the capital Tehran, Iran. - Sputnik International
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The IEA noted the first to second quarter slowdown in daily demand growth from 1.6 to 1.4 million barrels in year-on-year terms, adding that this will be partly offset by a rise in demand in the last quarter of 2016.

The oil market is watching demand fluctuations closely as the ongoing glut in global oil supply continues to depress prices, which plunged from $115 to less than $30 per barrel between June 2014 and January 2016, hitting their lowest levels since 2003. Prices have since recovered to around $40-45 per barrel for the Brent crude benchmark.

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