Global oil demand growth is forecast to slow to 1.2 million barrels per day (mb/d) in 2016.
That’s from an average of 1.4 mb/d this year, according to the International Energy Agency (IEA).
Its Oil Market Report states world oil demand growth peaked in the first quarter of this year at 1.8 mb/d and will drop throughout the rest of 2015 and into 2016.
It goes on to show global oil supply surged by 550, 000 barrels per day (550 kb/d) in June from both Organisation of the Petroleum Exporting Countries (OPEC) and non-OPEC producers.
The report shows world oil production was 3.1 mb/d higher than a year earlier at 96.6 mb/d. OPEC crude and natural gas liquids accounted for 60% of the gain.
It adds non-OPEC supply growth is expected to grind to a halt in 2016 as lower oil prices and spending cuts take a toll.
It also shows OPEC crude supply rose by 340 kb/d in June to 31.7 mb/d, a three- year high, led by record high output from Iraq, Saudi Arabia and the United Arab Emirates.