Growth in demand for oil will be much weaker next year than previously forecast amid a slower and more ‘brittle’ economic recovery.
So says the International Energy Agency, the organisation which assesses such things on behalf of industrialised nations.
As a result oil prices may slip further the agency said in its monthly report.
Crude prices fell for a third straight month in September and benchmark Brent reached a four-year low this month.
The IEA said: “Recent price drops appear both supply and demand driven” as it also cut its estimate for oil demand growth this year.
Brent has fallen by over 20 percent since June, when turmoil in Iraq lifted prices to $116 per barrel.
The IEA said it had cut its estimate for 2014 oil demand growth by 200,000 barrels per day (bpd) to 0.7 million bpd. In 2015, it expects demand to expand by 1.1 million bpd to 93.5 million bpd, up by 1.2 percent but 300,000 bpd less than previously forecast.