Global oil demand growth is forecast to ease further in 2016, the International Energy Agency (IEA) said on Thursday, predicting a slowdown in demand from some of the world's top consumers and a rise in demand from one particular economy.
Growth in global oil demand will ease to around 1.2 million barrels a day in 2016, the IEA said in its latest monthly report published on Thursday, below 2015's 1.8 million barrels a day (mb/d) expansion. This would take place, the IEA said, as "notable decelerations take hold across China, the U.S. and much of Europe."
It said such decelerations in those countries were the result of "slower industrial activity and generally mild recent winter temperatures" in member countries of the Organization of Economic Co-operation and Development (OECD). The agency also highlighted slower demand growth in China as the economy focuses on consumption rather than heavy manufacturing for its growth.
In contrast, the agency said that emerging economic powerhouse India could be replacing China as the "main engine of global demand growth."