The International Energy Agency reported it has revised downward its global oil demand forecast for 2014 since its last report by 200,000 b/d to 92.4 million b/d. IEA said this revision was made “on reduced expectations of economic growth and the weak recent trend.”
IEA now projects annual demand growth at 700,000 b/d in 2014, rising to 1.1 million b/d in 2015 “as the macroeconomic backdrop improves.”
Global supply, meanwhile, increased by nearly 910,000 b/d in September to 93.8 million b/d, IEA said, on higher output from both members of the Organization of Petroleum Exporting Countries and non-OPEC member countries. Compared with a year earlier, total supply stood 2.8 million b/d higher, as OPEC supply swung back to growth and amplified robust non-OPEC supply gains of 2.1 million b/d. Non-OPEC supply growth is expected to average 1.3 million b/d 2015.
Crude oil output from OPEC surged to a 13-month high in September, IEA said, led by Libya’s continued recovery and higher Iraqi flows. “Production rose 415,000 b/d from August to 30.66 million b/d. A weaker demand outlook cut the ‘call on OPEC crude and stock change’ by 200,000 b/d for 2015 to 29.3 million b/d. The ‘call’ declines seasonally by 1.5 million b/d from fourth-quarter 2014 to first-quarter 2015,” the agency said.
