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DirectThe International Energy Agency (IEA) has lowered its forecasts for global oil demand growth for this year and 2020, due to concerns about economic growth and the trade war between the China and the United States.
In its report released Friday, the IEA said it now expects oil demand growth to reach 1.1 million barrels per day by 2019, lowering its forecast by 100,000 barrels per day. compared to previous estimates.
In 2020, the IEA lowered its estimate of global oil demand growth from 50,000 barrels per day to 1.3 million barrels per day.
There was growing evidence of a slowdown in the economy as many large economies reported low GDP in the first half of the year, the agency said.
In the first five months of 2019, world oil demand increased by 520,000 barrels a day, the smallest increase since the 2008 global financial crisis.
Uncertainty has increased, making global oil demand growth in the first half extremely slow and fragile, the agency said.
The agency believes that some aspects of the political agreement between China and the United States on trade have deteriorated and that this could lead to a decline in business activity and a decrease in demand of oil growth.
The agency confirmed that the revision of its estimates came after the International Monetary Fund lowered the outlook for global economic growth last month.
This week, oil prices fell by about 5%, coinciding with the intensification of the trade dispute between the United States and China and the concern about the impact on global activity, and then on the demand for oil.
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