The IEA said on Wednesday that world oil supplies will exceed demand over 2019, while rise in production will overshadow consumer growth, which faces a risk of slowing the economy.
The agency cut its forecast for OPEC oil demand by 300,000 bpd to 31.3 million bpd in 2019, and kept its forecast for world demand growth for 2018 and 2019 unchanged from last month at 1.3 million bpd and 1.4 million bpd, respectively, but reduced Forecast growth in demand from outside OECD, the main driver of increasing world oil consumption.
"While the slowdown in economic growth in some countries slows oil demand expectations, a significant downward revision of our price assessment is supportive," IEA said in its monthly oil market report.
The agency has raised its non-OPEC oil production growth forecast to 2.4 million bpd this year and 1.9 million bpd next year, compared to its previous estimate of 2.2 million bpd and 1.8 million bpd, respectively.
