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Oil demand growth to slow in 2017: IEA report

The International Energy Agency’s market report for August shows that oil demand will slow in 2017.

Global oil demand growth is expected to slow from 1.4 million barrels per day in 2016 to 1.2 million barrels daily in 2017. The IEA notes that the 2017 forecast, while lower than this year is still above trend, and is 0.1 mb/d lower than previous expectations thanks to a poorer economic outlook.
“Global oil supply rose by about 0.8 mb/d in July, as both OPEC and non-OPEC production increased,” noted the report released Thursday. “Output was 215 kb/d lower than a year earlier, as declines from non-OPEC more than offset an 840 kb/d annual gain in total OPEC liquids. Non-OPEC production is forecast to drop by 0.9 mb/d this year before rebounding by 0.3 mb/d in 2017.”

OPEC crude output rose by 150,000 barrels per day to 33.39 mb/d in July as Saudi Arabia hit record production levels and Iraq continued to ramp up its production.