Slow demand, rising supply put further pressure on oil price: IEA
By Dmitry Zhdannikov and Christopher Johnson
LONDON (Reuters) - Oil prices are likely to come under further downward pressure, the International Energy Agency said on Friday, as it cut its outlook for demand growth in 2015 and predicted healthy non-OPEC supply gains would aggravate a global oil glut.
The agency, which coordinates energy policies of industrialized countries, cut its outlook for global oil demand growth for 2015 by 230,000 barrels per day (bpd) to 0.9 million bpd on expectations for lower fuel consumption in Russia and other oil-exporting countries.
The IEA said it was too early to expect low oil prices to start seriously curtailing North American supply boom.
"Barring a disorderly production response, it may well take some time for supply and demand to respond to the price rout," the IEA said in its monthly report.
Oil prices have been in steep decline since June due to slow demand growth and a North American shale oil boom.
The selloff gained pace after OPEC decided last month to keep its output target unchanged to fight for market share with rival producers.
Global crude oil benchmark Brent was trading on Friday at a five-year low around $63 per barrel, down more than 40 percent from June. The decline in price deepened after the release of the IEA report LCOc1.
Surging U.S. light tight oil supply will push total non-OPEC production to record growth of 1.9 million bpd this year although the pace of growth is expected to slow to 1.3 million in 2015, the IEA said. Continued...