By: Zawya

The International Energy Agency on Friday raised its forecast for supply growth this year after OPEC+'s latest decision to pump more oil, while it trimmed its outlook for demand, saying that in recent months oil use has slowed down significantly.

The IEA expects global supply to rise by 2.1 million barrels per day this year, up 300,000 bpd from the previous forecast, the agency, which advises industrialised countries, said in a monthly report.

OPEC+ is adding more crude to the market after the group decided to unwind its most recent layer of output cuts in April and accelerate the hikes from May, June, July and August.

Even so, the IEA said that rising refinery processing rates to meet summer travel and power-generation demand were tightening the market.

"Price indicators also point to a tighter physical oil market than suggested by the hefty surplus in our balances," the agency said.