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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