IEA raises oil demand growth estimate for 2016
The International Energy Agency (IEA) has revised upwards its estimate for global oil demand growth last year. The organisation’s latest monthly Oil Market Report, issued on Thursday 19 January, estimated growth at 1.5mb/d, with stronger European demand driving the increase. However, the IEA expected that, this year, demand growth would fall back to 1.3mb/d, owing to the possibility of higher product prices and a stronger US dollar. The report said that the output cuts announced by OPEC and non-OPEC producers were in their “probation period” and that it was “far too soon” to understand the level of compliance that had been achieved.