Demand growth shows new signs of cooling as global supply eases – IEA monthly report

According to the latest International Energy Agency (IEA) monthly oil market report published on Thursday, global oil demand is expected to cool-off in 2016, while on a positive note, global oil supplies fell last month.

Key Points:

Growth in global oil demand will ease to around 1.2 million barrels per day (mb/d) in 2016, below the 1.8 mb/d expansion of last year

Global oil supplies sank by 0.3 mb/d in March to 96.1 mb/d, with annual gains shrinking to 0.2 mb/d, from 1.7 mb/d a month earlier and 2.7 mb/d a year earlier

The outlook for non-OPEC production in 2016 is largely unchanged since last month’s 57 mb/d, 710 000 barrels per day (710 kb/d) less than the 2015 average

OPEC crude oil production fell by 90 kb/d in March to 32.47 mb/d as ongoing outages in Nigeria, the United Arab Emirates and Iraq more than offset a further increase from Iran and higher flows from Angola

Supply from Saudi Arabia dipped in March but held near 10.2 mb/d.

Besides, IEA also noted the following:

Iran’s return to the market is more measured than expected, March output was 400,000 bpd higher than at year start

Signs that slide in production of light, tight Oil in the United States is gathering pace

OPEC/Non-OPEC production freeze deal will have limited impact on physical Oil supplies