RISING oil supplies will mostly offset higher demand over the next five years, the International Energy Agency (IEA) said yesterday in a report that helped push prices lower.
IEA data showed the supply-demand picture would be virtually unchanged next year compared with this year, although spare capacity would begin to shrink by 2015.
Gas markets, which have been characterised by a glut, will stay very well supplied in the near term.
The agency raised its oil demand growth outlook to an average 1.4 per cent, or 1.2m barrels per day (bpd), every year from 2009 to 2015 on the back of robust demand from emerging markets, taking the total to 91.9m bpd in 2015.
“The oil market is marked by more comfortable spare capacity than envisaged last year,” the Paris-based IEA said in its latest report.