Global oil demand to cool, oversupply is ending, agency says

By The Associated Press

Global demand for oil will grow less than expected next year due to a weaker world economy, though the oversupply of crude in the market is ending, the International Energy Agency said Thursday.

A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Tuesday, Aug. 9, 2016. Asian stock markets were little changed Tuesday after Wall Street closed nearly flat amid little market-moving news. Prices of oil retreated slightly after reports of a new OPEC meeting sparked a rally.(AP Photo/Ahn Young-joon)

LONDON (AP) — Global demand for oil will grow less than expected next year due to a weaker world economy, though the oversupply of crude in the market is ending, the International Energy Agency said Thursday.

The Paris-based agency, which consults oil-importing nations, lowered its forecast for demand growth next year to 1.2 million barrels a day from 1.3 million barrels a day previously. That would be a slowdown from this year's growth of 1.4 million barrels a day.

However, the agency said in its monthly report that it expects oversupply to have ended in the third quarter of this year, with inventories likely to drop after a long period of increases.

That, the IEA said, will "help pave the way to a sustained tightening of the crude oil balance."

The price of oil has fallen in recent weeks, and the international benchmark, Brent, was flat at $44.05 on Thursday. The U.S. benchmark was down 9 cents at $41.62.

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