Oil prices have more than halved in the past 18 months as US shale oil output and a refusal by nations in the OPEC cartel to cut production added to oversupply.
After initially falling when the IEA report was released, Brent crude rose 58 cents to $44.64 a barrel in London, while US crude rose 38 cents to $42.13.
Although lower oil prices will lead to a decline in US production next year, the IEA said it would take months to clear the glut.
"This massive cushion has inflated even as the global oil market adjusts to $50 per barrel. Demand growth has risen to a five-year high of nearly two million barrels per day," the agency said. "Gains in demand have been outpaced by vigorous production from OPEC and resilient non-OPEC supply."
Growth in global demand for oil is expected to fall in 2016 as the allure of lower prices fades, the IEA added.
The agency expects consumption to fall to about 1.21 million barrels a day, down from an unusually high 1.82 million this year.
Oil prices have more than halved in the past 18 months as US shale oil output and a refusal by nations in the OPEC cartel to cut production added to oversupply.After initially falling when the IEA report was released, Brent crude rose 58 cents to $44.64 a barrel in London, while US crude rose 38 cents to $42.13.Although lower oil prices will lead to a decline in US production next year, the IEA said it would take months to clear the glut."This massive cushion has inflated even as the global oil market adjusts to $50 per barrel. Demand growth has risen to a five-year high of nearly two million barrels per day," the agency said. "Gains in demand have been outpaced by vigorous production from OPEC and resilient non-OPEC supply."Growth in global demand for oil is expected to fall in 2016 as the allure of lower prices fades, the IEA added.The agency expects consumption to fall to about 1.21 million barrels a day, down from an unusually high 1.82 million this year.
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