Mubasher: The crude market is likely to be oversupplied during the first six months of 2017, in line with the sharp fall in global oil demand growth, and rising inventories and supply, according to the International Energy Agency (IEA).
"This supply-demand dynamic may not change significantly in the coming months. As a result, supply will continue to outpace demand at least through the first half of next year," the IEA said.
Global refinery runs are expected to grow at their slowest pace in at least ten years in 2016, which will curb appetite for crude oil, just as inventories across the Organisation for Economic Co-operation and Development (OECD) grew to a new record high of 3.111 billion barrels.
"The expected draws in the third quarter of 2016 are now lower, while the build in the fourth quarter of 2016 is higher," the IEA added.
