The International Energy Agency (IEA) reported in its September Oil Market Report that demand for crude will fall sharply for this year and the year ahead:
The IEA Oil Market Report (OMR) for September trimmed global oil demand growth for 2014 and 2015 to 0.9 million barrels per day (mb/d) and 1.2 mb/d, respectively, because of a pronounced slowdown in demand growth in the second quarter of this year and a weaker outlook for Europe and China. Demand in 2015 is now set at 93.8 mb/d, the monthly report informed subscribers.
And:
Global supply declined 400 000 barrels per day (400 kb/d) in August, to 92.9 mb/d, as non‐OPEC production eased. Also, non-OPEC production fell by 130 kb/d in August to 30.31 mb/d as a steady recovery in Libya failed to offset lower supply from Saudi Arabia and Iraq. But compared with August 2013, global supply rose 810 kb/d as a 1.2 mb/d rise in non‐OPEC output more than offset a 370 kb/d year-on-year drop for OPEC. Non‐OPEC supply is set to expand by 1.6 mb/d in 2014, and 1.3 mb/d in 2015, to reach 57.6 mb/d.
Once the United States starts to export oil for the first time in decades, which it will, the supply will certainly drop more.
READ ALSO: EIA Lowers 2014 and 2015 Global Oil Demand Outlook
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