Economic uncertainty weighing on global oil demand

Markets Associated Press

The International Energy Agency says global oil demand growth is slowing by more than previously thought, largely because of a more pronounced economic slowdown during the third quarter of the year.

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In its September oil market report, the organization said Tuesday it anticipates global demand growth to rise by 1.3 million barrels a day in 2016 — 100,000 below the previous forecast.

The IEA anticipates a further slowdown next year, down to 1.2 million barrels a day "as underlying macroeconomic conditions remain uncertain."

The Paris-based organization also said world oil supplies fell by 300,000 barrels a day in August largely because of lower output from countries outside the OPEC oil cartel. Near-record OPEC production helped offset the steep non-OPEC fall.

The latest update comes as oil prices have stabilized.