|Published : 13 Apr 2017, 17:26:10|
Declining inventories amid weaker demand likely to keep oil prices low
Oil inventories had declined in February and March and demand was also seen weaker than earlier anticipated, according to a report in the global media quoting International Energy Agency (IEA).
This, the report added, has lowered its consumption growth forecast by around 100,000 barrels a day to 1.3m b/d.
Total demand is seen reaching 97.9m b/d over 2017, it added.
According to the IEA, the global oil market is “very close” to coming into balance, but it cautioned about weaker demand growth and strong US production that indicated attempts by the Organisation of Petroleum Exporting Countries (OPEC) to curb supplies would remain challenging, the report added.
Global oil stocks, the IEA said in its monthly oil market report, will decline this year if production cuts by the OPEC are maintained with its allies like Russia beyond May, the report said.
This can potentially support prices after the near three year-long slump, it added.