IEA: 2016 Global oil demand growth forecast raised to 1.4 mln bpd

In its latest monthly oil report, the International Energy Agency (IEA) raised its forecasts for 2016 global oil demand, although cautioned that very high oil inventories continue to present a threat to price stability.

Key Findings from the report:

Despite oil market balancing underway

Stocks close to topping out but are at such elevated levels that they remain a major dampener on prices

OECD commercial inventories built in May and June to a new record high, floating storage is at highest level since 2009

European oil demand has surprised on the upside but is unlikely to last due to Brexit uncertainty

IEA raises estimate of 2016 global oil demand growth by 0.1m bpd from last month's report to 1.4m bpd

2017 oil demand rising by a further 1.3m bpd due to India, China