The International Energy Agency says that global oil demand will grow at a much faster rate this year than previously estimated. The multi-national agency has revised its 2017 growth estimates upwards to 1.6 million barrels per day.
According to a report released by the agency yesterday, strong demand in the second-quarter has helped the oil markets which have been struggling to rebalance, as oversupply had dragged the prices downwards. According to the report ,demand grew by 2.3 million barrels per day (mb/d), or 2.4 percent, in the second quarter of 2017, this has prompted the IEA to increase its growth estimate for the year to 1.6 million barrels per day. For 2018, the IEA is predicting growth of 1.4 million barrels per day, or 1.4 percent.
In August this year, the IEA had predicted that annual growth would reach 1.5 million barrels per day, again an increase on July’s 1.4 mb/d forecast. According to the organisation, the supply was hampered by Hurricane Harvey in the US, which caused refineries to shut. The estimated loss of production due to the storm was around 200,000 barrels per day in August, with a further 300,000 barrels per day expected to be lost in September. According to IEA global supply fell by 720,000 barrels per day in August.
However, The International Energy Agency (IEA) still sees no need for a coordinated international release of oil stocks. “Currently as far as Harvey is concerned, we do not see that there is a major physical shortage of oil which (would) make us consider to release stocks,” Reuters reported the chief of the Paris-based agency, Fatih Birol as saying. “There is a need to consider how we place our stocks, where we place our stocks and the combination of crude oil versus products is an issue that we need to pay attention to,” he said when asked if the United States should reconsider moving its fuel stocks.