Oil held up in Friday afternoon trading, showing some resistance to the continued selling of the last coupe of days.
Friday 19th July 2019
Oil prices fell this week on rising fears of weakening demand and a renewed supply surplus.
Iran proposes new nuclear deal. Iran has offered a deal with the U.S. that would include permanent enhanced nuclear inspections in return for the U.S. lifting sanctions. Iran’s foreign minister Javad Zarif said it was “a substantial move.” The offer comes shortly after the U.S. downed an Iranian drone in the Persian Gulf on Thursday. It’s unclear how the Trump administration will respond, in light of the 12 conditions it laid out last year, many of which are unrelated to the nuclear program. Oil prices fell on the news.
IEA cuts oil demand forecast. The IEA lowered its 2019 demand growth forecast to 1.1 mb/d, and may cut it again if the global economy continues to cool, the agency’s executive director said. It’s the latest in a series of downward revisions. Last year, the IEA saw 2019 demand growth at 1.5 mb/d; as recently as the July Oil Market Report, the IEA stuck with a 1.2 mb/d estimate. “China is experiencing its slowest economic growth in the last three decades, so are some of the advanced economies ... if the global economy performs even poorer than we assume, then we may even look at our numbers once again in the next months to come,” Fatih Birol told Reuters…