The growth in global demand for oil is expected to slow to 1.2 million barrels per day (mb/d) in 2016.

That’s according to the International Energy Agency (IEA) which stated world oil supply was around 96mb/d in September.

Non-OPEC countries output accounted for under 40% of the 1.8mb/d annual increase.

The IEA’s monthly oil report added: “Lower oil prices and steep spending curbs are expected to cut non-OPEC output by nearly 0.5 mb/d in 2016.”

Supply from OPEC countries increased to 31.72 mb/d as record Iraqi output saved a dip in Saudi supply.

The IEA stated: “A slowdown in forecast demand growth and slightly higher non-OPEC supply lowers the 2016 ‘call’ on OPEC by 0.2 mb/d from last month’s Oil Market Report to 31.1 mb/d.”