IEA Cuts Oil Demand Forecast as Economic Uncertainty Weighs

The world will consume less oil next year than previously thought as a climate of economic insecurity continues, according to the latest demand forecast by the International Energy Agency (IEA).

The influential group estimates that global oil demand growth will slow from 1.4 millions of barrels a day (mb/d) in 2016 to 1.2 mb/d in 2017, 0.1 mb/d below its previous forecasts.

On Wednesday, OPEC, the group of the world’s biggest oil producing countries, left its outlook for oil demand growth for 2017 unchanged at 1.15 mb/d, but upgraded its forecast for 2016 oil demand growth, which has dampened hopes for a deal on a production freeze at its meeting next month.

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Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.