Demand for oil is expected to slow down

Is too much oil being produced?

The International Energy Agency (IEA) has said that demand for oil is expected to slow down for a second year in a row.

This forecast comes after years of excess supply, this made suppliers agree to cut output.

The IEA also believes that oil supply will grow in the coming months, this is due to many US oil-producing firms who are helping aid the increase.

The firm expects non-Opec production to rise by 485,000 barrels a day in 2017, this would total a massive 58.1m barrels a day.

In March US production already managed to reach 9m barrels a day.

The IEA also expects demand to increase by 1.3m barrels a day in 2017, this would rise to a total of 97.9m barrels a day.

This figure is less than the firm had anticipated previously, the IEA said this could also be an “optimistic” forecast.