International Energy Agency (IEA) released a report on Friday, stating that the global demand growth forecast has been raised from 1.4 million barrels per day t0 1.5 million barrels per day for this year. The agency also noted that it expects the demand for the Organization of the Petroleum Exporting Countries (OPEC) crude oil to declined in 2017 and 2018.
Meanwhile, the IEA said global oil supply rose by 520,000 barrels per day in July from the month before that, increasing for a third consecutive month. OPEC crude production was also higher in July, adding 230,000 barrels per day to 32.8 million barrels per day. The report stated the rise in OPEC’s supply was mostly driven by the recovering Libyan production.
In the meantime, the oil prices traded in the red, declining almost 1% as investors continued to doubt the efficiency of the output cut agreement amid worries of a steady supply increase. West Texas Intermediate for September delivery lost 0.88%, changing hands for $48.16 per barrel at 10:07 am CET while the international benchmark Brent for settlements in October declined 0.79% to trade for $51.50 per barrel at 10:09 am CET.