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The global oil demand growth will be at 1.2 million barrels per day in 2016, according to the forecasts of the International Energy Agency (IEA).

Exceptionally mild temperatures in the early part of the winter in Japan, Europe and the US, alongside weak economic sentiment in China, Brazil, Russia and other commodity-dependent economies, saw global oil demand growth flip from a near five-year high in 3Q15 (2.1 million barrels per day) to a one-year low in 4Q15 (1.0 million barrels per day), according to the IEA's Oil Market Report.

IEA estimates global oil supplies expanded by 2.6 million barrels per day in 2015, following hefty gains of 2.4 million barrels per day in 2014.

By December, according to the IEA’s forecasts, growth had eased to 0.6 million barrels per day, with lower non-OPEC production pegged below year-earlier levels for the first time since September 2012.

OPEC oil output eased by 90,000 barrels per day in December to 32.28 million barrels per day, including newly-rejoined Indonesia, according to the IEA’s estimates.

The agency mentioned that Iran, now relieved of sanctions, insists it will boost output by an immediate 500,000 barrels per day.

The IEA’s assessment is that around 300,000 barrels per day of additional crude could be flowing to world markets by the end of the first quarter of 2016.

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