Models of oil barrels and a pump jack are displayed in front of a stock graph in this illustration. - Reuters
LONDON: The International Energy Agency on Wednesday raised its forecast for oil supply growth this year following a decision by the OPEC+ producer group to hike production and lowered its demand forecast due to lacklustre demand across the major economies.
The IEA expects world oil supply to rise by 2.5 million barrels per day (bpd) in 2025, up from 2.1 million bpd previously forecast, the agency, which advises industrialised countries said in a monthly report.
World oil demand will rise by 680,000 bpd this year, down from 700,000 bpd previously forecast, the Paris-based agency said.
"The latest data show lacklustre demand across the major economies and, with consumer confidence still depressed, a sharp rebound appears remote," the IEA said.
Oil prices briefly extended losses after the IEA published its report at 0800 GMT.
Despite higher OPEC+ production, non-OPEC producers will continue to lead world supply growth this year and next, according to the IEA.
Despite lowering its demand forecast, the IEA expects global oil refining runs to approach an all-time high of 85.6 million bpd in August, it said. - Reuters
