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Global oil demand will slow in 2016, the International Energy Agency (IEA) said in its latest monthly report, as it warned that the rebalancing of supply and demand in oil markets "has yet to run its course."

Crude oil prices fell to their lowest point in nearly three months in early July, pressured by "ever rising supply" and not helped by the financial turmoil in Greece and China which has unsettled world markets, the IEA said Friday.

Global oil prices fell around 60 percent earlier this year, from around $114 a barrel last June, on the back of a glut in supply and lack of demand amid an uncertain global growth outlook. On Friday, benchmark Brent crude was trading at $59.44 a battle and U.S. light crude was around $53.62.

On the back of this volatility, the IEA forecast that global oil demand growth would slow to 1.2 million barrels a day (mb/d) in 2016, from around 1.4 mb/d this year.

On the back of this volatility, the IEA forecast that global oil demand growth would slow to 1.2 million barrels a day (mb/d) in 2016, from around 1.4 mb/d this year.

RepublicanfromEngland wrote:It was only at the end of the decade, CEO Total, Christophe de Margerie, stated that the world won't ever see more than 89 million barrels of crude per day.

Yet it is now 93. http://www.iea.org/aboutus/faqs/oil/ or by the begining of this year 94.

The figures are changing, but what doesn't change is the need to grow. The events of every day energy constraints are somewhat a while away.

PeakOiler wrote:Here's the current world oil supply chart from the IEA:



https://www.iea.org/oilmarketreport/omrpublic/

Synapsid wrote:dissident,

I believe the IEA has NGL and refinery gain in there too.

The 2016 World Energy Outlook prepared by the International Energy Agency was introduced yesterday at a meeting organized by Sabancı University Istanbul International Energy and Climate Center.

Speaking at the introductory meeting of the International Energy Agency (IEA), Executive Director Dr. Fatih Birol said the most serious growth in the energy sector will occur in the field of renewable energy in the next 25 years. He added that as of last month, the Middle Eastern countries have reached the highest level over the last 40 years with a share of 35 percent in the world's oil production.

Birol noted that rock gas and oil have had major impacts on economic and geopolitical developments in the world and that serious developments are expected in liquefied natural gas (LNG) in the coming years.

Suggesting that last year was the year of records for renewable energy, Birol stressed that more than 50 percent of newly established power plants in the world were made up of renewable energy sources in 2015.

Recalling that the biggest contribution to the world's total energy consumption has come from coal over the past 25 years, Birol said growth in coal will slow down significantly in the next 25 years, the demand in petroleum will grow slower than in the past, the most serious growth will come from renewable and nuclear energy, known as clean technologies, and in the next 25 years, renewable energy will lead the way in growth within the framework of existing policies.

US oil import will

go down to zero

Explaining the U.S. is now an oil importing country, Birol said U.S. oil imports will go down to zero almost within 10-15 years, which will affect not only oil markets, but many other areas as well, according to their estimates, and oil production will increase significantly in the U.S. especially with the new administration.

Birol suggested that they expect a very volatile period in the oil markets, stressing that the lack of current investments can create serious problems in a few years, and the number of new oil investment projects in 2015 and 2016 have maintained the lowest levels since 1950. "The number of newly discovered oil fields in 2016 is the lowest of the last 40 years. In that respect, if the demand for the next two-three years continues to grow at a rate of 1 million barrels per day, as in the current situation, the world oil markets may face major problems," Birol added.