Global oil demand to outpace supply in 2019
Baku, Azerbaijan, May 8
By Leman Zeynalova – Trend:
Global oil demand will outpace supply in 2019, the US Energy Information Administration (EIA) said in its May Short-term Energy Outlook (STEO), Trend reports.
EIA forecasts global oil inventories will decline by 0.2 million b/d in 2019 and then increase by 0.1 million b/d in 2020.
Global demand outpaces supply in 2019 in EIA’s forecast, but global liquid fuels supply then rises by 1.9 million b/d in 2020, with 1.5 million of that growth coming from the United States.
Global oil demand rises by 1.5 million b/d in 2020 in the forecast, up from expected growth of 1.4 million b/d in 2019.
Given the expected delayed response of global crude oil production to current oil market fundamentals, EIA now expects average net global oil inventory withdrawals of about 0.4 million b/d during the second and third quarters of 2019.
EIA estimates that liquid fuels inventories for countries in the Organization for Economic Cooperation and Development (OECD), on a days-of-supply basis, ended April slightly below their five-year (2014–18) average level.
“The price increases in the futures market have been primarily concentrated in the near-month contracts, indicating current market prices are accounting for potential effects for near-term crude oil supply disruptions and inventory withdrawals without as large a price increase on longer-dated crude oil contracts,” reads the report.
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