Baku, Azerbaijan, April 29
By Leman Zeynalova – Trend:
Global consumption of crude oil rose 1.1 percent in the first quarter of 2019 (y/y), a slight acceleration relative to the previous quarter, Trend reports citing the World Bank’s Commodity Markets Outlook.
The report shows that China, India, and the United States accounted for most of the increase.
“Oil consumption expanded 3 percent (0.4 mb/d) in China, although the pace of growth has been slowing, partly because of environmental policies. For example, demand from the transport sector has been dampened by the use of vehicle quotas in major cities which has restricted new vehicle sales. Growth in the United States has been strong in recent quarters and rose 1.4 percent (0.3 mb/d) in the first quarter of 2019 (y/y). Strong economic growth, increased demand from the transport sector (particularly for e-commerce), and a booming petrochemical industry all contributed to the rise,” said WB.
Oil consumption among other advanced economies has fallen, with a decline of 0.1 mb/d in both Germany and Japan on weaker economic activity, according to the report.
World Bank expects global oil consumption to rise by 1.2 percent in 2019, somewhat less than expected in the October 2018 report and toward the lower end of industry forecasts.
“ Global growth in 2019 is expected to be weaker than previously forecast, although the weakness should be temporary. Non-OECD countries are expected to continue to account for most of the increase in demand given their higher growth rates relative to advanced economies,” reads the report.
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