• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 58 mins Judge Orders Trump To Release Tax Returns
  • 7 mins EU has already lost the Trump vs. EU Trade War
  • 3 hours The lies and follies of the "cry wolf" enviros: No more fire in the kitchen: Cities are banning natural gas in homes to save the planet
  • 4 hours China's Renewables Boom Hits the Wall
  • 4 hours Iran Finds New Oil Field With Over 50 Billion Barrels: Rouhani
  • 4 hours CHK Trading @ 90 Cents
  • 17 hours China Burns More Coal than the Rest of the World !
  • 12 hours Offshore SE Asia: Offshore OFS Could Get Major Boost in SE Asia
  • 19 hours New York State Taxpayers Lose 900 Million to Tesla
  • 16 hours "Climate Migrants"
  • 23 hours Giant Windmills Wildly Unpopular
  • 16 hours Does Brazil Auction Flop Forbode the Outcome of the Saudi Aramco IPO ?
Ross McCracken

Ross McCracken

Ross is an energy analyst, writer and consultant who was previously the Managing Editor of Platts Energy Economist

More Info

Why OPEC Wants Oil Below $60

OPEC

In its June oil market report, the International Energy Agency (IEA) revised downward its global oil demand forecast for 2019 for the second consecutive month, this time by 100,000 b/d to 1.2 million b/d. It said that in first-quarter 2019, global oil demand had risen by just 250,000 b/d – “the lowest annual growth registered since 4Q11, when the price of Brent crude oil averaged $109/bbl.”

The agency also revised downward its second-quarter 2019 oil demand growth estimate by 300,000 b/d, reflecting lower than expected Chinese demand of 230,000 b/d in April, “owing to significant downgrades for diesel and LPG.”

These estimates incorporated new GDP forecasts from the OECD published in May. The OECD estimates a drop in global GDP growth this year to 3.2% from 3.5% last year and 3.7% in 2017. Growth in 2019 and 2020 (3.4%) will be “well below the growth rates seen over the past three decades, or even in 2017-18.”

The OECD’s assessment of the global economy was gloomy, pointing to the impact of trade tensions on business investment and trade growth, both of which have fallen sharply. Manufacturing production has contracted, and while the services sector has held up well, the OECD warned that it is “unlikely that they [services] decouple for long from manufacturing.”

Trade war impact

The OECD’s weak growth outlook is based on no further deterioration in trade relations but did not include…




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