IEA: Slow Demand, Rising Supply Put Further Pressure On Oil Price
LONDON, Dec 12 (Reuters) - Oil prices are likely to come under further downward pressure, the International Energy Agency said on Friday, as it cut its outlook for demand growth in 2015 and predicted healthy non-OPEC supply gains would aggravate a global oil glut.
Oil prices have fallen by 45 percent since June with the sell-off gaining pace after OPEC decided last month to keep its output target unchanged.
The IEA said that if OPEC maintained production levels, the global oversupply would reach 2 million barrels per day in the first half of 2015, when demand will be seasonally weak.
The agency, which coordinates energy policies of industrialised countries, cut its outlook for global oil demand growth for 2015 by 230,000 barrels per day (bpd) to 900,000 bpd on expectations for lower fuel consumption in Russia and other oil-exporting countries.
The IEA said it was too early to expect low oil prices to start seriously curtailing North America's supply boom.
"Barring a disorderly production response, it may well take some time for supply and demand to respond to the price rout," the IEA said in its monthly report.
Global crude oil benchmark Brent was trading on Friday at a five-year low around $63 per barrel, down from $115 in June. The decline in price deepened after the release of the IEA report.
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