International Power: continuing glut of oil until the first half of 2017 with slowing
International Power: continuing glut of oil until the first half of 2017 with slowing demand
The International Energy Agency said on Tuesday that the sharp decline in global oil demand growth in conjunction with rising inventories and oversupply means that the crude market will remain oversupplied in the first six months of 2017 at least.
She said the agency "indicate our expectations in a report this month that the supply and demand of this movement will probably not change dramatically in the coming months. As a result, the supply exceeds the demand will continue during the first half of next year at the very least."
The International Energy Agency predicted earlier in the disappearance of excess supply from the market in the second half of this year.
The report said the expected increase in global refinery run rates at the slowest pace in at least a decade this year, which will reduce demand for crude oil with high inventories in developed countries to a new record high of 3.111 billion barrels.
She said the agency "with the most pessimistic of the activity of refineries, our expectations for the second half of 2016 and our amendments relating to crude supplies, the expected withdrawal [of stocks] in the third quarter of 2016 is less now, while increased the pace of the rise in inventories in the last quarter of 2016".