IEA warns of risk to oil demand from record global debt


Oct 11 Record global debt levels pose a clear
risk to oil demand, the International Energy Agency said on
Tuesday, citing figures from the International Monetary Fund
last week that showed the world is awash with a record $152
trillion in debt.

The IEA on Tuesday forecast global oil demand will grow at a
rate of 1.2 million barrels per day in 2017, largely unchanged
from 2016 and down from 2015’s five-year high of 1.79 million
bpd.

Years of low interest rates and have encouraged sovereigns,
corporates and individuals alike to load up on debt, which the
IMF estimates is equivalent to 225 percent of total global
economic activity.

Financial markets have generally shown that investors
anticipate a long period of low inflation and low interest
rates. However, the 45 percent rise in the price of oil this
year means energy is no longer the “overwhelmingly…



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