Global oil demand to rise 1.2 mn bpd in 2017 vs 1.8 mn bpd in 2016: IEA's Birol

IEA Executive Director Fatih Birol said he was expecting global oil markets to rebalance in the second half of next year

Global oil demand will rise by 1.2 million barrels per day (bpd) in 2017, compared with oil demand growth this year of 1.8 million bpd, International Energy Agency (IEA) Executive Director Fatih Birol told reporters on Tuesday.

Birol also said he was expecting global oil markets to rebalance in the second half of next year, unless there is a supply intervention that raises prices and draws suppliers back into production earlier than that.

"If there is an increase in the prices as a result of this (OPEC-led) intervention we may well see a response from higher cost production," he said.

Organization of the Petroleum Exporting Countries (OPEC) members and other producers such as Russia have been discussing for some months cooperation on cutting back on crude supplies to support prices that are still less than 50 per cent of levels two years ago.