International Energy Agency cuts oil demand forecast for this year, 2018

By Jeff Davies
Retail Crowd

Production of crude rose by 100,000 barrels per day to a total of 97.5 million, the International Energy Agency said on Tuesday. The monthly report revealed a revision downward in the estimate for the increase in demand for this year and 2018, both by 100,000 barrels per day, to 1.5 million and 1.3 million per day, respectively, to reach 98.9 million barrels.

After in the previous update the IEA predicted the market would reach the balance by the second quarter, it now said there will be a small supply surplus, 200,000 barrels per day, in the three months through June, on a rise in output outside of the Organization of the Petroleum Exporting Countries. The recent turmoil in Saudi Arabia has “added extra momentum to the rally” in oil prices, the agency’s analysts warned.