IEA cuts 2024 demand growth forecast by 40,000 bpd
Projection for 2025 raised by 50,000 bpd
Oil drops as Iran supply disruption concerns ease

LONDON, Oct 15 Reuters The world oil market is heading for a sizeable surplus in the new year, the International Energy Agency said on Tuesday as it reassured markets that the agency stood ready to act if needed to cover any supply disruption from Iran.

Oil prices have risen in recent weeks on investor concern that Israel may retaliate against a missile attack from Iran, a major oil exporter and OPEC member, by hitting its oil facilities or nuclear sites.

But the IEA, which manages industrialised countries39; emergency oil stocks, said public stocks were more than 1.2 billion barrels and spare capacity in OPEC, which comprises the Organization of the Petroleum Exporting Countries and allies such as Russia, stood at historic highs.

As supply developments unfold, the IEA stands ready to act if necessary, the agency said in a monthly report on Tuesday.

For now, supply keeps flowing, and in the absence of a major disruption, the market is faced with a sizeable surplus in the new year.

Also in the report, the IEA further cut its global oil demand growth forecast for this year, citing weakness in China, a day after OPEC also lowered its demand projections.

Oil was down more than 4 a barrel towards 74 on Tuesday, pressured by the weaker demand outlook and after a media report said Israel is willing not to strike Iranian oil…