Oil Falls on Slower Market Rebalancing Pace Forecast
Crude prices dipped on Tuesday after monthly report by the International Energy Agency showed that global demand for oil is slowing. The IEA cut its global oil demand forecast by about 100,000 barrels a day for this year and 200,000 barrels a day in 2017.
Oil consumption is expected to increase more slowly at 1.3 million barrels a day in 2016 and 1.2 million barrels a day next year due to ongoing economic slowdown and heavy flooding in China which dented demand in industrial oil use and transport fuel. India, Europe and the U.S which are also forecast to lose momentum in the third quarter, also cited as a reason of the projection downgrade.
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