The International Energy Agency (IEA), in its monthly oil market report, released this Friday, lowered global oil demand growth forecast for 2018 and 2019 by 0.11 million barrels per day (mbpd) to 1.28 mbpd and 1.36 mbpd respectively.
• Cuts estimate for demand for OPEC crude oil in 2018 and 2019 by 0.3 mbpd to 32.0 and 31.6 mbpd respectively.
• Raises forecast for non-OPEC supply by 180,000 bpd to an increase of 2.2 mbpd for 2018 and by 130,000 bpd to +1.8 mbpd for 2019.
• Global oil output has risen 1.4 mbpd since May, suggesting the market is adequately supplied for now.
• World oil demand near 100 mbpd is straining parts of the system to the limit, spare capacity down to only 2% of global demand.
• The strain on global oil industry could be with us for some time, will likely be accompanied by higher prices.
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