IEA Says Oil Demand will Rise in 2017

Global oil demand will rise by 1.2 million barrels per day (bpd) in 2017, steady from 2016 global demand growth levels, despite gains in Chinese consumption, the chief of the International Energy Agency (IEA) said on Tuesday in Singapore.

Talking on the sidelines of Singapore’s International Energy Week, the IEA’s executive director Fatih Birol said that oil demand growth could weaken, if prices kept rising.

International benchmark Brent crude oil futures have almost doubled from their January multi-year lows to over $50 per barrel.

Birol said the slowdown in demand growth, compared with the 1.8 million bpd seen in 2015, would likely mean that a re-balancing of oil markets in terms of supply and demand would not happen until the second half of 2017.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza