IEA comments on oil market
- Note that demand growth between January and May was only 520 kbd
- That is the slowest for the period since 2008
- The outlook for global oil demand is fragile in increasing signs of an economic downturn
- The situation becomes even more uncertain with a greater likelihood of a downgrade rather than an upward one
The agency trimmed global oil demand estimates this year by a further 1
As global growth concerns continue to rise amid ongoing trade tensions, it is not a surprise to see weakened demand despite Saudi Arabia trying to downplay the issue. This will pose a problem for oil prices in the future, given that global growth prospects are still expensive for the next year or so.