IEA: Oil Demand Growth at Lowest Since 2008

IEA: Oil Demand Growth at Lowest Since 2008IEA: Oil Demand Growth at Lowest Since 2008

The International Energy Agency cut its global oil demand growth forecasts for this year and next on Friday, citing fears of an economic downturn as the US-China trade war casts a shadow over markets.
The energy agency now expects oil demand growth to reach 1.1 million barrels per day in 2019 and 1.3 million bpd in 2020, CNBC reported.
That constitutes a downward revision of 100,000 bpd for this year and 50,000 bpd for next year.
In its closely-watched monthly oil report, the IEA said there was “growing evidence of an economic slowdown” with many large economies reporting weak gross domestic product growth in the first half of the year.
From January to May, oil demand rose by 520,000 bpd, marking the lowest rise in that period since the financial crisis in 2008.
“The situation is becoming even more uncertain,” the IEA said, before describing global oil demand growth in the first half of the year as “very sluggish.”
“Meanwhile, the prospects for a political agreement between China and the United States on trade have worsened. This could lead to reduced trade activity and less oil demand growth.”
Looking ahead, the IEA said the outlook for oil demand growth is “fragile,” with a greater likelihood of a downward revision than an upward one.
Brent traded at $57.48 Friday, up almost 0.2%, while US West Texas Intermediate stood at $52.64, around 0.1% higher.
Both contracts have fallen more than 20% from peaks reached in April.

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