X

Sign Up To Our Free Newsletter

Join Now

Thanks for subscribing to our free newsletter!

ERROR

  • 3 minutes Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Scientists Warn That Filling The Sahara With Solar Panels Is A Bad Idea
  • 11 minutes United States LNG Exports Reach Third Place
  • 15 minutes Joe Biden's Presidency
  • 14 mins U.S. Presidential Elections Status - Electoral Votes
  • 3 hours Texas forced to have rolling black outs, primarily because of large declines in output from fossil fuel power plants
  • 2 days Interest article about windmills and waterwheels in Europe
  • 14 hours Retired RAF pilot wins legal challenge over a wind farm
  • 1 hour Good Marriage And Bad Divorce: Germany's Merkel Wants Britain and EU To Divorce On Good Terms
  • 2 days “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 2 days Chance for (Saudi)Arabian peninsula having giant onshore Gas too?
Exxon Shocks As Oil Reserves Drop By A Third

Exxon Shocks As Oil Reserves Drop By A Third

Exxon slashed its oil reserves…

Who’s To Blame For The Expensive Energy Bills In Texas?

Who’s To Blame For The Expensive Energy Bills In Texas?

Texas’ deregulated independent system operator…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

IEA: Oil Demand Growth To Slow This Year

The International Energy Agency (IEA) has forecast in its latest monthly Oil Market Report that global growth in crude oil demand will slow down faster than previously expected. The agency now sees growth at 1.3 million bpd for 2016, which represents a downward revision by 100,000 bpd from its previous estimate. The revision was prompted by a faster-than-expected waning in demand growth over the third quarter of the year.

To add gloom, the IEA also said that demand growth will further slacken to 1.2 million bpd next year, citing “uncertain” macroeconomic conditions.

“ […] Supply will continue to outpace demand at least through the first half of next year,” the agency noted.

The international energy body says that OPEC set new records in production last month, pumping 33.47 million bpd, thanks to Middle Eastern producers. Kuwait and the UAE both reached the highest output levels in their history, while Saudi Arabia kept producing at record-high levels and Iran continued its fast ramp-up of production. On an annual basis, the August daily average of OPEC was 930,000 bpd above last year’s.

On the non-OPEC front, however, things looked a bit better in terms of output in August, with global crude oil supply inching down by 300,000 bpd thanks to “steep declines” in non-OPEC producers. Still, because of OPEC’s record-setting the average global daily supply remained excessive in relation to demand at 96.9 million bpd. Related: Manchester United Posts Record Revenue Without Petrodollars

Over the short term, the IEA sees no chance of the market returning to a balance, predicting the glut will persist at least until June 2017, with stockpiles of crude around the world still expanding.

At the same time, however, the agency noted that global production growth is slowing down, with the U.S. alone accounting for half of this slowdown as independent E&Ps have cut investments in new output in an immediately palpable way. The agency said non-OPEC supply is expected to return to growth in 2017.

On the whole, the picture remains bleak, according to the IEA, with rising supply and slowing demand growth defying the usual logic of oil markets and filling up storage space to unprecedented levels.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • jhm on September 13 2016 said:
    "...rising supply and slowing demand growth defying the usual logic of oil markets and filling up storage space to unprecedented levels."

    This is the economics of divestment. Reserves lose value as they risk becoming stranded assets. So the new market logic is to increase production now to minimize R/P ratios and long-term losses. This logic will perpetuate oversupply until the most endowed producers have R/P ratios under 30 years.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News