Mubasher: Global oil demand will rise in global markets, in a rate that exceeds expectations, according to the International Energy Agency (IEA) latest monthly report.
The IEA adjusted its expectation for the demand growth by 120,000 barrels per day (bpd) to 1.4 million barrels in 2016, and by 110,000 barrels per day to 1.3 million bpd in 2017.
If non-OPEC producers were to commit to the output deal, this could raise the demand by 600,000 bpd, the report indicated.
The agency’s report also highlighted that if OPEC members were to go through with the crude output limitation plan to 32.7 million bpd, with non-OPEC producers cutting production by 558,000 pbd, oil markets will most likely transform to deficit.
The report also added that the upcoming weeks will be decisive in identifying whether the recent hike in oil prices will continue or not, noting that limiting production will help sustain revenues for producers after two years of decline.
