Oil refineries worldwide are expected to process lower volumes in the fourth quarter of 2017 while the global crude market overflow with supply, according to the International Energy Agency (IEA).
The IEA, a part of the Organization for Economic Cooperation and Development, said in its latest Oil Market Report that it also scaled down its demand forecast for the quarter amid higher prices and relatively mild temperatures during early winter in the northern hemisphere.
“(O)ur refining throughput forecast is revised marginally lower to 80.8 million barrels per day, but refined product inventories are forecast to build as demand seasonally slows down,” the IEA said.
The Paris-based agency added that a “relatively robust” level of refining activity was expected to continue into January and February, with throughput forecast to grow by 1.1 million barrels daily compared to the same months of 2017.
As for full-year growth in oil demand, the IEA revised its forecast by 100,000 barrels daily, now with 1.5 million barrels daily in 2017—up 1.6 percent—to bring the volume to 97.7 million barrels daily.