Oil in Global Economy Series: Key highlights from IEA’s oil market report

Last night, International Energy Agency (IEA) released its monthly oil market report. Here are the key highlights from that report,

• After strong second quarter demand growth of 2.2 million barrels per day (Mbpd), growth died down in the second quarter to 1.2 Mbpd. IEA kept its demand growth forecast unchanged for 2017 at 1.6 Mbpd and 1.4 Mbpd for 2018.
   
• Strong non-OPEC supply growth is forecasted. According to IEA, non-OPEC supply growth will be 0.7 Mbpd in 2017 and 1.5 Mbpd in 2018. Global oil supplies rose by 90,000 barrels per day in September up 0.62 million barrels per day compared to last year.
   
• As per IEA, OPEC crude output was virtually unchanged in September as slightly higher flows from Libya and Iraq offset lower supply from Venezuela. The output of 32.65 Mbpd was down 400,000 barrels/day compared to a year ago. Compliance with supply cuts for the year-to-date is 86 percent.
   
• OECD commercial stocks have declined 14.2 million barrels in August. Oil surplus declined to 170 million barrels over the five-year average.
   
• In the first quarter of 2017, global oil demand was 96.63 million barrels per day, while supply was at 96.67 million barrels per day.

WTI is currently trading at $50.9 per barrel and Brent at $5.6 per barrel premium.