IEA: Oil demand Set To Slow in 2017

Global demand for oil will grow by 1.2 million barrels per day (bpd) in 2017, down from 1.4 million bpd this year, the BBC quoted International Energy Agency a report by International Energy Agency (IEA). 
This represents a cut of 100,000 bpd from the IEA's forecast last month. 
Meanwhile, increasing supply is keeping pressure on crude prices, which have fallen sharply in the past month. 
After reaching a price of above $52 a barrel in June, Brent crude fell 14.5% in July due to combination of rising stockpiles and worries about the outlook for demand. 
Brent was up 4.2% at $45.90 a barrel, while US added 4% to $43.37. 
Global supply of oil rose by 800,000 bpd in July, with output from nations in the Opec rising sharply. 
The IEA said huge amounts of stored oil was also putting pressure on prices. 
However, the IEA said that stockpiles may ease in the coming months, which could act to stabilise prices. 
The agency said slowing demand growth had encouraged struggling refiners to substantially cut output for the first time since 2008-09, which would help eat into the massive overhang of petrol, diesel and other refined fuels. 
It said that this could ultimately be supportive of oil prices. 
"The resulting product stock draw (fall in stockpiles) will increase refiners' appetite for crude oil and help pave the way to a sustained tightening of the crude oil balance.

Source : QNA