IEA comments on the oil market
- 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.
