Commodities

IEA forecasts drop in oil demand on global economic uncertainty

PTI Paris | Updated on August 09, 2019 Published on August 09, 2019

Concerns over the health of the global economy, marked by the US-China trade dispute, forced the International Energy Agency on Friday to lower its growth forecast for oil demand for 2019 and 2020.

“There have been concerns about the health of the global economy expressed in recent editions of this report and shown by reduced expectations for oil demand growth,” the Paris-based agency said in its monthly report.

“Now, the situation is becoming even more uncertain: the US-China trade dispute remains unresolved and in September new tariffs are due to be imposed.

It also noted the IMF’s recent downgrading of its economic outlook. The IEA thus lowered its estimates for growth in global oil demand for this year by 0.1 million barrels per day to 1.1 mbd. For 2020, growth was predicted to be slightly down, by 50,000 barrels per day to 1.3 mbd.

Tensions in Gulf

The IEA said that geopolitical tensions in West Asia “remain high, with US sanctions recently extended to more Iranian officials and a Chinese oil importer, as well as another tanker seizure“.

Published on August 09, 2019
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