Agency Says Global Oil Demand To Cool, Oversupply Is Ending

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

(AP Photo)
(AP Photo)

Global demand for oil will grow less than expected next year due to a weaker world economy, though the oversupply of crude in the market is ending, the International Energy Agency said Thursday.

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.

(AP Photo)(AP Photo)

However, the agency said in its monthly report that it expects oversupply to have ended in the third quarter of this year, with inventories likely to drop after a long period of increases.

That, the IEA said, will "help pave the way to a sustained tightening of the crude oil balance."

The price of oil has fallen in recent weeks, and the international benchmark, Brent, was flat at $44.05 on Thursday. The U.S. benchmark was down 9 cents at $41.62. 

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