Economic Uncertainty Weighing on Oil

Economic Uncertainty Weighing on Oil

LONDON (AP) -- 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.

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.