The recent gains recorded by global oil prices have slipped as the commodity has lost more than $2 in seven days.
As at 11am on Wednesday, Brent crude, the international benchmark dropped to $61 from the $64 recorded on November 7.
US West Texas Intermediate (WTI) traded at $55.18, at against its trading price of $57.30 on November 7.
In a report released on Tuesday, the International Energy Agency (IEA) had projected that the US will be the world’s leading producer of oil and gas by 2025.
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IEA reduced its oil demand growth forecast by 100,000 barrels per day (bpd) for 2017 and forecast 1.3 million bpd oil demand for 2018.
“The oil market faces a difficult challenge in 1Q18 with supply expected to exceed demand by 600,000 bpd followed by another, smaller, surplus of 200,000 bpd in 2018.”
While speaking at the Abu Dhabi International Petroleum Exhibition Conference (ADIPEC), Mohammed Barkindo, secretary general of the Organisation of Petroleum Exporting Countries (OPEC), said countries did not have to worry about oil reaching its peak demand until 2040.
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Barkindo had said an increase in global population might result in more people living without access to electricity, cooking gas or heating and thus require more oil.
In its monthly report released on Monday, OPEC had reviewed its oil demand forecast saying oil demand will increase by 360,000bpd to stand at 33.42 million barrels per day.
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