Oil demand growth is forecast to ease back “considerably” in 2016.
It will be reduced to 1.2 million barrels per day (mb/d), according to the International Energy Agency (IEA).
Oil demand peaked to 1.6mb/d in 2015.
In its Oil Market Report (OMR) for February, the IEA stated demand will be pulled down by “notable slowdowns” in Europe, China and the US.
Global oil supply dropped by 0.2mb/d to 96.5mb/d in January as higher OPEC output only partly offset lower non-OPEC production, it added.
It believes non-OPEC output will decline to 57.1mb/d this year.
The report added: “OPEC oil output rose by 280,000 barrels per day in January to 32.63mb/d as Saudi Arabia, Iraq and a sanctions-free Iran all turned up the taps. Supplies from the group during January stood nearly 1.7mb/d higher year-on-year.”
Keisuke Sadamori, IEA’s Director of Energy Markets and Security, said there will be a “robust supply” of oil this year and India will overtake China as “the centre of oil demand”.