The FINANCIAL — The International Energy Agency said on July 10 global demand for oil would slow down next year, as it warned that crude prices could resume a recent downward spiral, according to Nasdaq.
“The bottom of the market may still be ahead,” the agency said in its closely watched monthly oil-market report.
In its first oil-consumption assessment for next year, the IEA–which advises industrialized nations on their energy policies–said global oil demand growth is forecast to slow to 1.2 million barrels a day in 2016. That compares with an average 1.4 million barrels a day this year.
It said a return of Iranian oil and a Greek exit from the euro could put further pressure on oil prices–which have lost about 10% in the past month.
Tehran this week failed to meet a deadline to clinch a nuclear deal with world powers. But if sanctions were lifted, it could raise exports immediately out of 40 million barrels currently stored on its vessels, the IEA said.
In addition, the agency said the Organization of the Petroleum Exporting Countries continued to pump at high levels.
It estimates OPEC crude oil output climbed by 340,000 barrels a day in June to 31.7 million barrels a day–the highest since April 2012 and 1.7 million barrels a day higher than a production target it agreed to maintain last month. The rise was due to record production in Iraq, Saudi Arabia and the United Arab Emirates, it said.