The growth in the world's demand for oil is set to slow next year amid an "unrelenting" oversupply of crude, according to the International Energy Agency (IEA), in a report that could pile more pressure on already tumbling oil prices.
The IEA said the "first signs of a slowdown" in global oil demand had been seen in the fourth quarter of 2015, in its latest report published Friday.
"Global demand growth of 1.2 mb/d (million barrels per day) is forecast in 2016, a notable slowdown from this year's five-year high as many of the factors that contributed to a rapid increase in oil use are likely to prove temporary," the monthly report from the IEA said
Early indicators for the fourth quarter of 2015 show growth easing to 1.3 mb/d year-on-year from a third quarter peak of 2.2 mb/d, the IEA noted. The IEA added that weaker U.S. demand conditions since September were "a key contributor to the downside."