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June 18th, 2019:

Oil Demand Takes a Hit From Cooling Economic Growth

American Energy Coalition - June 18th, 2019

"A cooling global economy could mean slower oil demand growth in 2019 even while oil producers maintain plentiful supply, the International Energy Agency said Friday," and reported in the Wall Street Journal.

"In its closely watched oil-market report, the IEA downgraded its forecast for global oil demand for a second straight month, to 1.2 million barrels a day from 1.3 million barrels a day the previous month.

""After grappling with supply-side concerns in recent months, the oil market’s main focus is now “on oil demand as economic sentiment weakens,” the IEA said, citing the weakest global trade growth in a decade, as well as a warm Japanese winter and a weakening European petrochemicals industry..." reports the Journal article.

"...The release marked the third significant oil market report this week to take a more bearish stance on oil demand, after the Energy Information Administration released downbeat demand numbers Tuesday and the Organization of the Petroleum Exporting Countries echoed that negativity on Thursday..."

"...Combined with uncertain demand, “relentless supply growth from their competitors” will play on the minds of OPEC nations and their allies when they meet later this month in Vienna to discuss extending supply cuts, the agency said..." and reported in the WSJ story.

"...While global oil investors are set to remain focused on demand and global economic growth, the supply risks that dominated markets earlier in the year haven’t dissipated. The IEA highlighted uncertainty over supply from Venezuela and Libya."

To read the original Wall Street Journal Article, go to: https://www.wsj.com/articles/oil-demand-takes-a-hit-from-cooling-economic-growth-11560499201

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