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IEA revises upward its demand growth data for 2016

PARIS, Jan 19 (KUNA) -- Oil demand grew faster than expected in 2016 due to increased economic activity in Europe and a cold snap that has seen temperatures plummet on the European continent in past weeks, the International Energy Agency (IEA) said on Thursday.
In its regular, monthly oil market report (OMR), the IEA said data being compiles showed a boost of 1.4 million barrels per day (mbpd) in oil demand last year, especially driven by higher call on oil in the fourth quarter.
Average oil demand is now expected to come out at 96.5 mbpd for 2016 and this is projected to rise by 1.3 mbpd in 2017 to given an average of 97.8 mbpd, the report indicated.
The IEA also said that it expected "a steeper decline" in OPEC output due to cuts that are being implemented in line with an agreement within the producer group last November, when producers in the group approved a 1.2 mbpd reduction of output to 32.5 mbpd.
The Agency said that the OPEC decision would help thin out burgeoning oil stocks built up during the accelerated production period accompanied by a lower price scenario.
Already in December, OPEC output fell to 33.09 mbpd, a drop of 320,000 b/d from record rates the month before.
"Early indications suggest a deeper OPEC reduction may be under way for January, as Saudi Arabia and its neighbours enforce supply cuts." the report said.
The IEA also remarked that oil inventories held by the industrialised OECD nations had fallen by 82 million barrels in November but levels still remained above the "symbolic" level of 3.0 billion barrels. (end) jk.nfm