More bad news for the province’s beleaguered energy industry.
The Paris-based International Energy Agency had lowered its forecast for growth in global oil demand. The IEA now says demand for oil will grow by 1.2 million barrels a day in 2017. That’s down 100,000 barrels a day from the group’s previous forecast a month ago. Growth in demand this year is estimated at 1.4 million bpd.
There’s also an increasing supply of crude exerting downward price pressure. Brent crude, which is the international benchmark, rose above $52 a barrel in June, but fell more than 14% as stockpiles rose along with concerns about the demand outlook. After the IEA report today, Brent dropped another 54 cents to US$43.51 a barrel.
West Texas Intermediate, the North American benchmark, was up 76 cents to 42.47 an hour after markets opened this morning.