IEA warns that oil demand is ebbing while supply remains at ‘elevated levels’

Source: CNBC

There are warning signs that global oil demand is ebbing while oil stocks remain at "elevated levels," threatening a rebalancing act in oil markets, the International Energy Agency (IEA) warned on Wednesday.
With oil prices rising since the lows seen at the start of the year, hopes have risen that a "balancing act" between supply and demand in oil markets was finally taking place after two years of declining prices due to a supply glut.
But the IEA warned in its latest report that there were warning signs that demand momentum could be ebbing while oil stocks remain high.

"After the drama we saw at the beginning of this year when prices were sliding daily, the fact that crude oil has in the past two months moved within a range in the high $40s per barrel should be a relief for some producers. For some time now this Report has signaled a return to balance as being the big picture direction in which the market is heading," the IEA said.