Global debt level pose a clear risk to oil demand, according to the International Energy Agency (IEA).
The energy body cited figures from the International Monetary Fund (IMF) which showed the world is awash with around $152trillion in debt.
The IEA forecast global oil demand will grow at rate of 1.2million barrels per day in 2017.
It will remain unchanged from 2016 and down from 2015.
It comes after years of low interest rated which have encouraged sovereigns and corporates and individuals to load up on debt.
In its report the IEA said:”If one believes futures prices, oil could continue to act as an inflationary pressure. Assuming the majority of other global price pressures remain deflationary, the current low inflation/low interest rate environment will most likely remain.
“If other costs start to reflect the potential oil-price upside, or at least lack of downside, then the status quo could rapidly change making incumbent debt levels a hugely restrictive expense.”
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