IEA: Stronger Oil Demand, Balanced Market In 2016

(RTTNews) - The International Energy Agency (IEA) sees the oil market to be balanced in the second half of 2016. The agency said it saw the "first significant drop" in global oil supply since 2013 last month.

The IEA said oil supply was reduced by 800,000 barrels per day in May. Total output was 95.4 million barrels per day, 590,000 barrels per day less than a year ago, which was the first significant drop since early 2013, helped by outages in in OPEC and non-OPEC countries.

Non-OPEC supply growth is expected to return in 2017 at a modest 0.2 mb/d, after declining by 0.9 mb/d in 2016

Global oil demand growth in 2016 will now be 1.3 million barrels a day, the IEA said. In 2017, IEA expects to see the same rate of growth and global demand will reach 97.4 million barrels per day. Non-OECD nations will provide most of the expected gains in both years. The growth rate is slightly above the previous trend, mostly due to relatively low crude oil prices.