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Global oil demand to remain steady at 1.2 mln bpd in 2017 despite rise in Chinese consumption - IEA’s Birol

Chief of the International Energy Agency (IEA), Fatih Birol on the wires, via Reuters, said that global oil demand will rise by 1.2 million barrels per day (bpd) in 2017, steady compared to oil demand growth of 1.2 million bpd in 2016, despite gains in Chinese consumption.

Birol also said he was expecting global oil markets to rebalance in the second half of 2017, 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," IEA executive director Fatih Birol said.

Organization of the Petroleum Exporting Countries (OPEC) members and other producers such as Russia have been discussing for cooperation on setting oil production limits to support prices that are still less than 50 per cent of levels two years ago.

The IEA raised its forecast for renewable energy growth over the next five years, saying on Tuesday it expects the share of renewables in the world to rise to 28 percent by 2021 from 23 percent generated in 2015.

"We are witnessing a transformation of global power markets led by renewables," said Birol.

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