• 3 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 6 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 11 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 14 minutes Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 1 hour Shale Oil Fiasco
  • 3 hours Everything you think you know about economics is WRONG!
  • 4 hours USA v China. Which is 'best'?
  • 16 hours Wallstreet's "acid test" for Democrat Presidential candidate to receive their financial support . . . Support "Carried Interest"
  • 2 hours Global Debt Worries. How Will This End?
  • 12 hours My interview on PDVSA Petrocaribe and corruption
  • 2 hours Quotes from the Widowmaker
  • 1 day Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 29 mins Judiciary impeachment: Congressman says Sean Misko, Abigail Grace and unnamed 3rd (Ciaramella) need to testify.
  • 55 mins Tesla Launches Faster Third Generation Supercharger
  • 23 hours Petroleum Industry Domain Names
Why Oil Prices Just Jumped

Why Oil Prices Just Jumped

Oil prices recovered somewhat on…

The Next Major Middle East Oil IPO

The Next Major Middle East Oil IPO

Oman Oil Company could become…

OPEC Cuts Global Oil Demand Growth Forecast, Again

Iraq oil production

For a second consecutive month, OPEC revised down its global oil demand growth estimate for this year and next, pointing at a combination of factors that could slow down global economic growth.

In its closely watched Monthly Oil Market Report published on Wednesday, OPEC revised down world oil demand growth for 2018 by around 20,000 bpd, primarily as a result of the slower-than-expected performance by Latin America and the Middle East in the second quarter. Global oil demand growth is now pegged at 1.62 million bpd, with total global consumption at 98.82 million bpd this year.

For 2019, OPEC also trimmed its oil demand growth estimate by 20,000 bpd from the previous month’s report, mostly due to economic revisions to Latin America and the Middle East. World oil demand growth in 2019 is now anticipated at 1.41 million bpd and total global consumption at around 100.23 million bpd, OPEC said.

In its report last month, OPEC had also revised down its oil demand growth forecast by 20,000 bpd for each of 2018 and 2019. In August, OPEC warned about rising trade tensions that could “provide a significant downside risk to the current relatively positive outlook.”

In the September report, OPEC’s warnings have grown and the cartel said that “Underlying fragility has recently emerged in several areas and therefore the risk to 2018 and 2019 global economic forecasts is now more skewed to the downside.”

Related: How Natural Gas Is Paving The Way To A Cleaner Energy Future

“A combination of monetary tightening from G4 central banks, the weakening financial situations in some emerging and developing economies, rising trade tensions and ongoing geopolitical concerns in some parts of the world constitute challenges to the current global economic growth trend,” OPEC said.

Referring to the August production, the cartel’s secondary sources pegged it at an average 32.56 million bpd, up by 278,000 bpd over July, due to higher production in Libya, Iraq, Nigeria, and Saudi Arabia, while production declined in Iran, Venezuela, and Algeria.

Saudi Arabia’s oil production inched up 38,000 bpd to 10.401 million bpd, according to secondary sources. Production in Iran, on the other hand, plunged by 150,000 bpd to 3.584 million bpd, as the U.S. sanctions start to impact not only Iranian exports, but also its production. Iran saw the largest drop in output, with Venezuela a distant second in declines with a 36,000-bpd fall compared to July, to just 1.235 million bpd in August.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play