Oil demand across the globe will rise less than previously thought, according to the International Energy Agency (IEA).
In its latest Oil Market Report, the IEA trimmed its projection for growth in global demand to one million barrels a day (b/d) – down 180,000 b/d. It cited lower-than-expected deliveries in the second quarter and a weaker outlook for the global economy.
“Remarkably low oil deliveries in both Europe and North America helped slash this report’s estimate of global demand growth for the second quarter of 2014 to less than 700,000 barrels a day year-over-year — a low of more than two years,” the IEA said.
However, demand is set to rise by 1.3 million b/d as the economy improves in 2015, it added.
The report suggested OPEC crude oil supply saw a five-month high, rising by 300,000 b/d to 30.4 million b/d in July, as Saudi Arabia raised production and supplies recovered in Libya.
Oil prices are also unlikely to rise soon despite conflicts near key oil producing areas as huge rises in oil production are keeping markets well supplied, the IEA said.