The International Energy Agency (IEA) has raised its forecast for world oil demand in 2017 by 100,000 barrels per day in comparison with the August forecast to 97.7 million barrels per day, according to a report.
IEA expects that world demand for oil in 2017 will increase by 1.6 million barrels per day year-on-year.
This forecast is 100,000 barrels per day higher than the IEA August forecast.
Global oil commercial stocks remained unchanged in July 2017 at 3.016 billion barrels versus June. "The surplus over the five-year average fell to 190 million barrels," the report said.
"OECD product stocks were only 35 million barrels above the five-year average at end-July and could soon fall below it because of the impact of Hurricane Harvey," IEA said.
IEA also raised its forecast for world oil demand in 2018 by 100,000 barrels per day to 99.1 million barrels per day (mb/d); the forecast for the growth in demand in 2018 was also increased by 100,000 barrels per day to 1.4 million barrels per day.
"Demand growth is strengthening: robust demand in OECD (the Organisation for Economic Co-operation and Development) countries was a key factor in 2Q17's global growth of 2.3 mb/d, the highest quarterly year-on-year increase since mid-2015.
“Consequently, our estimated demand growth for 2017 has been increased to 1.6 mb/d. On the supply side, global production fell in August for the first time since April, with lower output from Opec countries being one factor but also, following a fall in month-on-month production in June, US crude production has been affected by Harvey from a lower base than we anticipated," the IEA report said.