IEA cut global oil demand forecast by 200k barrels per day in second half of 2016 and throughout 2017 amid fading stimulus from cheaper fuel and economic worries in developing countries. The 3Q 2016 slowdown has suprised the agency and the demand growth is now seen at 0.8 mln barrels per day, lowest in two years.
According to IEA, demand growth in 2016 will struggle to rise above 1.3 mln barrels per day. Let us recall that in previous report the agency saw it at 1.4 mln barrels. What’s more, IEA also suggests that product prices are no longer falling now despite the fact that the oil is near 50$ per barrel.