United States Oil Fund (USO)

[eFinanceMarkets]

IEA cuts outlook for 2017 oil demand growth, sees second straight annual drop

The International Energy Agency lowered its forecast for 2017 global oil demand growth to 1.3M bbl/day in its latest monthly market report, with growth expected to slow in 2017 for second year in a row.

The weakening demand picture is a challenge for OPEC's efforts to cut supply and raise prices by bringing an end to the glut that has weighed on the oil market for the last three years.

OPEC’s oil production fell by 365K bbl/day in March, bringing the cartel’s compliance to its supply commitments to 99% and likely smoothing talks as members begin to consider the prospect of extending the cuts.

Meanwhile, production in the U.S. rose to 9M bbl/day in March from a trough of 8.6M bbl/day last September, the IEA says.