IEA cuts oil demand outlook on growing fears of global economic slowdown
IEA notes that the slowdown in the global will overshadow the loss of supply during the attack on Saudi Arabia last month
- Cuts oil demand growth forecast by 100k bpd to 1.0 mil bpd in 2019
- Cuts oil demand growth forecast by 100k bpd to 1.2 mil bpd in 2020
The agency notes that the strike on Saudi Arabia's production facilities did cause the biggest oil disruption in modern history but expects oil prices to ease further as production recovers amid concerns of a global recession.
I think that sums up the medium-to-long term outlook for oil very well. Geopolitical tensions in the Middle East may give brief and temporary rises to oil prices but as long as the global economy is sinking, oil prices will be dragged lower as well in the big picture.