55cb3e14c46188c30e8b4589

http://www.rt.com/business/312268-iea-oil-output-glut/

The excess of oil on the global market reached 3 million barrels per day (bpd) in the second quarter, says the International Energy Agency (IEA). The supply is growing "at breakneck pace" despite a collapse in oil prices.

The main culprit seems to be Saudi-led OPEC, which is sticking to keeping its market share rather than defending the prices. The cartel boosted its output to 31.8 million bpd (OPEC says 31.5 million) in July, which is bigger that its quota it officially promised in June not to neither cut, nor increase. This is the highest output from King Salman-dominated bloc in three years.

However, OPEC's role in the global oversupply is only part of the story.

"OPEC only accounts for a bit more than half of the annual increase in world oil supply. While non-OPEC output growth has sunk from its heights of 2014, supply in July was still running 1.2 million bpd on a year earlier thanks to hefty investment made previously," said the agency in a report published Wednesday.

At the same time, global demand for oil is also accelerating faster than expected. The IEA predicts that global oil consumption will grow by 1.6 million bpd in 2015. This is 200,000 bpd higher than the agency forecast a month ago. This will be the fastest growth in five years.

The projected bigger demand will slow down the glut in 2016 even if OPEC sticks to its recent output.

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"The supply is growing "at breakneck pace" despite a collapse in oil prices."

drown your competitors in a sea of oil..take them under their production costings and you kill them..

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