The IEA on Friday said global demand for oil would slow down next year, as it warned that crude prices could resume a recent downward spiral.
A last-ditch agreement to avert default is expected sometime today.
“The prospects on a Greece bailout is encouraging but we’re down on anticipation that an Iran deal may also get done”, said David Thompson, executive vice president at Powerhouse, an energy-specialized commodities broker in Washington.
But the IEA, which advises the world’s biggest economies on energy policy, says this mini golden era will soon end.
It is anticipated that is actually production in Simply.S. shale essential oil products should stay idle to mid-2016 at the time of productivity decreases in Russian Federation, the Paris-based consultant said in its first thorough check on the entire year ahead.
Oil prices may have further to fall despite stabilising in recent months – and even beginning to rise modestly – because of a massive oversupply the worldwide Energy Agency (IEA) has said. That means the cartel is producing 1.7 million barrels more than the official target OPEC ministers agreed to last month. Oil prices rose on Friday, lifted by a rebound in Chinese stock prices and hopes of a breakthrough in the Greek debt crisis, but worries about oversupply and slowing demand limited gains. Sokou said the drop in oil price was a blessing for those who use the item as a production input and for those who sell it out.
Traders are also keeping an eye on negotiations in Vienna between western powers and Iran on a deal to curb Tehran’s nuclear ambitions and allow the lifting of punishing sanctions. It forecast zero growth in non-Opec oil supply in 2016 after an increase of 1 million bpd in 2015.
IEA’s estimates said that global oil supply surged by 550,000 bpd in June, on higher output from both OPEC and non-OPEC producers. Non-OPEC supply growth is expected to grind to a halt in 2016, as lower oil prices and spending cuts take a toll.
Global oil demand growth will slow next year to 1.2 million barrels a day – reaching 95.2 million a day – down from an expansion of 1.4 million a day this year, according to the report.
Data from China as well as the IEA figures capped oil’s gains.
Top oil exporter Saudi Arabia continues to keep output and export supply high, maintaining fully contracted volumes to Asia in August.