IEA says oil market outlook remains fragile

Author: Justin Low | Category: News

IEA comments on the oil market

IEA oil
  • Notes that demand growth between January to May was just 520k bpd
  • That's the slowest for the period since 2008
  • Outlook for global oil demand is fragile amid growing signs of an economic slowdown
  • Situation is becoming even more uncertain with a greater likelihood of a downward revision rather than an upward one
The agency trimmed its estimates for global oil demand growth this year by another 100k bpd to 1.1 mil bpd, with a 50k bpd cut to the 2020 estimate as well to just 1.3 mil bpd.

As global growth concerns continue to rise amid ongoing trade tensions, it's not a surprise to see weakening demand in spite of Saudi Arabia trying to downplay the matter. That is going to pose a problem for oil prices moving forward considering that the global growth outlook remains bleak over the next year or so.

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