• 4 minutes US-backed coup in Venezuela not so smooth
  • 7 minutes Why Trump will win the wall fight
  • 11 minutes Oil imports by countries
  • 13 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 9 mins Climate Change: A Summer of Storms and Smog Is Coming
  • 9 hours Itt looks like natural gas may be at its lowest price ever.
  • 20 mins Venezuela: Nicolas Maduro closes border with Brazil
  • 29 mins Teens For Climate: Swedish Student Leader Wins EU Pledge To Spend Billions On Climate
  • 8 hours Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 14 hours North Korea's Kim To Travel To Vietnam By Train, Summit At Government Guesthouse
  • 18 hours Amazon’s Exit Could Scare Off Tech Companies From New York
  • 9 hours students walk out of school in protest of climate change
  • 1 day Washington Eyes Crackdown On OPEC
  • 1 day Europe Adds Saudi Arabia to Dirty-Money Blacklist
  • 21 hours America’s Shale Boom Keeps Rolling Even as Wildcatters Save Cash
  • 7 hours Mineral rights owners,
Alt Text

A Big Week For Oil Bulls

It’s been a great week…

Alt Text

Will The U.S. Actively Pursue Regime Change In Iran?

The regime change campaign in…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Trending Discussions

IEA: U.S.-China Trade Row Could Dampen Oil Demand Growth

OPEC is very close to achieving its mission to draw oil inventories down to their five-year average, but the ongoing U.S.-China trade spat is a risk to oil demand growth expectations this year, the International Energy Agency (IEA) said in its Oil Market Report on Friday.

The Paris-based agency kept its global oil demand growth estimate unchanged from last month’s report—at 1.5 million bpd for this year.

“However, there is an element of risk to this outlook from the current tension on trade tariffs between China and the US,” the IEA noted.

The trade dispute is “introducing a downward risk to the forecast,” said the agency which sees oil demand growth possibly dropping by around 690,000 bpd if global economic growth were reduced by 1 percent on the back of widespread increase in trade tariffs.

“Oil demand would suffer the direct impact of lower bunker consumption and lower inland transportation of traded goods, reducing fuel oil and diesel use,” said the IEA.

On the supply side, the agency continues to expect non-OPEC growth unchanged at 1.8 million bpd, with the U.S. production growth also unchanged from the previous report, at 1.3 million bpd year on year. Yet, there is concern about takeaway bottlenecks in Midland, Texas and in Canada, and those could widen the discounts of local grades to the international benchmarks, according to the IEA. Related: The Six Factors Driving Oil Markets In 2018

OECD commercial stocks—OPEC’s current measure of the success of its production cut deal—dropped by 26 million barrels in February and were just 30 million barrels above the five-year average at end-February.

“The average could be reached by May, on the assumption of tight balances in 2Q18. Product stocks are already in deficit,” the IEA said.

“With markets expected to tighten, it is possible that when we publish OECD stocks data in the next month or two they will have reached or even fallen below the five-year average target. It is not for us to declare on behalf of the Vienna agreement countries that it is ‘mission accomplished’, but if our outlook is accurate, it certainly looks very much like it,” the agency said.

Recent reports have it that OPEC is considering ‘moving the goalposts’ on the deal, instead using seven or more years of average to measure the success of the cuts. Most proposals to change the current metric of assessing the success of the pact would shift the inventory goal further out in time.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment
  • Kr55 on April 14 2018 said:
    People funding the IEA demand any mass firings of their employees yet? Or do they enjoy funding an org that is just wrong all the time?

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News