• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 20 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 7 days America should go after China but it should be done in a wise way.
  • 23 hours Even Shell Agrees with Climate Change!
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 3 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 3 days World could get rid of Putin and Russia but nobody is bold enough
  • 6 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
Oil Rises Ahead of Weekly Inventory Data

Oil Rises Ahead of Weekly Inventory Data

Preview Text: Crude continues to…

IEA Might Revise Down Oil Demand Growth Forecasts, Again

If the pace of global economy deteriorates further, the International Energy Agency (IEA) could revise down again its oil demand growth expectations for this year and next, the IEA’s executive director Fatih Birol told Reuters on Friday.

“It will depend on the global economy. If the global economy weakens, for which there are already some signs we may lower oil demand expectations,” Birol said on the sidelines of a forum in South Korea.

The IEA and many other organizations and analysts, including OPEC, have trimmed their oil demand growth estimates several times this year already, on the back of signs of slowing economic growth in the world, also due to the U.S.-China trade spat.  

The IEA’s latest downward revision to oil demand growth came in its August Oil Market Report, in which the Paris-based agency cut its forecast by 100,000 bpd to 1.1 million bpd for 2019, after seeing that between January and May demand growth was just 520,000 bpd, the lowest increase for the period since 2008. The IEA also revised down in August its oil demand growth estimate for 2020, by 50,000 bpd to 1.3 million bpd.

In its latest Oil Market Report published in September, the IEA kept its August forecasts unchanged, expecting 1.1 million bpd demand growth this year and 1.3 million bpd oil demand growth for next year.

Related: LNG Investments Hit Record In 2019

“For 2H19, we assume no further deterioration in the economic climate and in trade disputes. Oil demand growth will be significantly higher helped by a comparison versus a low base in 2H18, lower oil prices versus a year ago and additions to petrochemicals capacity,” the agency said in the report on September 12.

The IEA, however, warned that even if the oil market is tightening in the very short term, OPEC will be facing a “daunting” challenge in managing the market in 2020, when returning to a significant surplus would place pressure on oil prices.

Speaking to Reuters on Friday, the IEA’s Birol said that the lowest pace in Chinese economic growth in decades could pressure oil demand growth downward, but on the other hand, the lower oil prices compared to last year put an upward pressure on demand.

ADVERTISEMENT

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News