Global Oil Demand to Cool Amid Weaker Economy, Agency Says

The International Energy Agency expects global demand for oil to grow less than previously expected next year due to a weaker economy.

Mnet 124165 Energy Drilling Feder Parr

LONDON (AP) — The International Energy Agency expects global demand for oil to grow less than previously expected next year due to a weaker economy.

The Paris-based agency, which consults oil-importing nations, lowered its forecast for demand growth next year to 1.2 million barrels a day from 1.3 million barrels a day previously. That would be a slowdown from this year's growth of 1.4 million barrels a day.

The price of oil has fallen in recent weeks, and the international benchmark, Brent, was down another 54 cents at $43.51 a barrel after the IEA's report on Thursday.

The recent drop in prices appears due to a combination of waning expectations of economic growth and high supply. The IEA noted global supply rose in July and that there was an inventory overhang in June.

More in Chemical Processing