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Global oil demand growth to slow next year

10 July 2015 14:26 (UTC+04:00)
Global oil demand growth to slow next year

By Aygun Badalova

Global oil demand growth is forecast to slow to 1.2 million barrels per day (bpd) in 2016, from an average 1.4 million bpd this year, said the Oil Market Report published by the International Energy Agency (IEA) on July 10.

World oil demand growth appears to have peaked in the first quarter at 1.8 million bpd and will continue to ease throughout the rest of 2015 and into 2016 as temporary support fades, according to the report.

IEA’s estimates said that global oil supply surged by 550,000 bpd in June, on higher output from both OPEC and non-OPEC producers.

At 96.6 million bpd, world oil production was an impressive 3.1 million bpd higher than a year earlier, with OPEC crude and natural gas liquids accounting for 60 percent of the gain, the report said. 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 340,000 bpd in June to 31.7 million bpd, a three- year high, led by record high output from Iraq, Saudi Arabia and the United Arab Emirates, according to the IEA’s estimates.

The agency said OPEC output stood 1.5 million bpd above the previous year. The "call on OPEC crude and stock change" for 2016 is forecast to rise by 1 million bpd, to 30.3 million bpd.

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