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Oil demand set to rise says International Energy Agency

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By Euronews
Oil demand set to rise says International Energy Agency

<p>Oil demand worldwide will rise more strongly than expected in 2016 and 2017 according to the International Energy Agency.</p> <p>In its monthly oil market report, the <span class="caps">IEA</span> said revisions to its estimate of Chinese and Russian consumption had prompted it to raise its forecast for global oil demand growth this year and next.</p> <p>For 2016 it lifted its forecast by 120,000 barrels per day (bpd) to 1.4 million bpd, and for 2017 by 110,000 bpd to 1.3 million bpd.</p> <p>The agency said it was too soon to assess the impact of a promised cut in supply by the world’s largest producers, but it does see crude oil stockpiles declining.</p> <blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">Next few weeks crucial in determining if production cuts are being implemented & if increase in oil prices will last <a href="https://t.co/71vqqLSTMy">https://t.co/71vqqLSTMy</a></p>— <span class="caps">IEA</span> (@IEA) <a href="https://twitter.com/IEA/status/808598591170351105">December 13, 2016</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <p>A re-balancing of world oil markets could occur in the first half of next year if production cuts by <span class="caps">OPEC</span> and other producers are implemented, International Energy Agency chief Fatih Birol said.</p> <p>Birol told a conference in Prague that higher oil prices would weaken global demand. </p> <p>“If <span class="caps">OPEC</span> and its non-<span class="caps">OPEC</span> partners stick to their pledges, global inventories could start to draw in the first half of 2017,” the <span class="caps">IEA</span> said, adding that this was not its own forecast, but was based on the agreement. </p> <p>“The deal is for six months and we should allow time for it to be implemented before re-assessing our market outlook. Success means the reinforcement of prices and revenue stability for producers after two difficult years; failure risks starting a fourth year of stock builds and a possible return to lower prices,” the Paris-based organisation said.</p> <p>The <span class="caps">IEA</span> said global oil supply rose to a record 98.2 million bpd in November.</p>