Cheap oil set to lose effect on demand growth: IEA

AFP, PARIS: Growth in global demand for crude is set to slow next year as the allure of cheap oil fades, the International Energy Agency (IEA) said yesterday. The IEA now expects oil demand to grow by 1.2 million barrels per day (mbd) in 2016, after a five-year high of 1.8 mbd this year as cold weather and rekindled economic growth in some countries also boosted consumption. "Momentum eases towards its long-term trend as recent props -- sharply lower oil prices, colder-than-year-earlier winter weather and post-recessionary bounces in some countries -- are likely to give way," the IEA said. Oil has been in oversupply in world markets this year, easily absorbing strong demand from Europe, China and especially India. "Indian demand growth soared to its fastest pace in more than a decade in September," the IEA said. Indian demand will continue "robust", helped by economic optimism in the country, an ambitious road-building programme and rising car sales. Developed countries have continued stockpiling oil and commercial inventories in OECD nations now stand at a record 3 billion barrels, the IEA said. Growth in worldwide oil stocks slowed in the third quarter, but is still "significantly" above the historical average, it said.

Cheap oil set to lose effect on demand growth: IEA

AFP, PARIS: Growth in global demand for crude is set to slow next year as the allure of cheap oil fades, the International Energy Agency (IEA) said yesterday. The IEA now expects oil demand to grow by 1.2 million barrels per day (mbd) in 2016, after a five-year high of 1.8 mbd this year as cold weather and rekindled economic growth in some countries also boosted consumption. Momentum eases towards its long-term trend as recent props -- sharply lower oil prices, colder-than-year-earlier winter weather and post-recessionary bounces in some countries -- are likely to give way, the IEA said. Oil has been in oversupply in world markets this year, easily absorbing strong demand from Europe, China and especially India. Indian demand growth soared to its fastest pace in more than a decade in September, the IEA said. Indian demand will continue robust, helped by economic optimism in the country, an ambitious road-building programme and rising car sales. Developed countries have continued stockpiling oil and commercial inventories in OECD nations now stand at a record 3 billion barrels, the IEA said. Growth in worldwide oil stocks slowed in the third quarter, but is still significantly above the historical average, it said.