MOSCOW (Sputnik) — The IAE forecast is less optimistic than that of the Organization of the Petroleum Exporting Countries (OPEC). In Wednesday's monthly report, the cartel predicted 2016 daily demand to reach 94.26 million barrels while revising growth expectations upward slightly.
"Global oil demand growth of 1.4 mb/d for 2016, unchanged from last month’s Report, is expected to slow to 1.2 mb/d in 2017 as underlying support from low oil prices wanes. The 2017 forecast – still above-trend – is 0.1 mb/d below our previous Report due to a dimmer macroeconomic outlook," the report reads.
The world's daily demand for oil is thus expected to average at 96.3 million barrels this year before rising to 97.5 million barrels next year.
The oil market is watching demand fluctuations closely as the ongoing glut in global oil supply continues to depress prices, which plunged from $115 to less than $30 per barrel between June 2014 and January 2016, hitting their lowest levels since 2003. Prices have since recovered to around $40-45 per barrel for the Brent crude benchmark.
