DHAKA: A weaker economic outlook means demand for oil in 2017 is likely to grow at a slower rate than this year, according to the International Energy Agency (IEA).

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 IEA said.

This represents a cut of 100,000 bpd from the IEA’s forecast last month, reports the BBC.

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.

Global supply of oil rose by 800,000 bpd in July, with output from nations in the Opec oil producers' cartel rising sharply.

“Opec crude oil output rose by 150,000 bpd in July to 33.4 million bpd - holding at an eight-year high - as Saudi Arabia produced at the highest ever and Iraq pumped harder,” the IEA said.

BDST: 2034 HRS, AUG 11, 2016
RR