OPEC downgrades oil demand growth forecasts

Oil&Gas Materials 11 July 2019 16:16 (UTC +04:00)

Baku, Azerbaijan, July 11

By Leman Zeynalova – Trend:

World oil demand in 2019 is now projected to increase by 1.14 mb/d, 0.07 mb/d lower from the previous month’s report, Trend reports with reference to OPEC Oil Market Report.

Total global oil consumption is expected to average 99.86 mb/d, said the cartel.

“To account for the latest available data, 2019 oil demand projections were adjusted lower in the OECD region due to poor 1Q19 data in all sub-regions. OECD Americas and OECD Asia Pacific were both adjusted lower by 0.15 mb/d and 0.13 mb/d in 1Q19, respectively. Oil demand growth in OECD Americas posted lower-than-anticipated gains, largely affected by sluggish oil demand data from the US and Canada in March,” reads the report.

This slowdown was led by weakening gasoline requirements in the US and softening light distillate demand in Canada, according to OPEC.

“In OECD Asia Pacific, oil demand performance slowed significantly, largely impacted by planned and unplanned petrochemical shutdowns during the quarter. Additionally, OECD Europe oil demand growth for 1Q19 was adjusted lower, amid slower-than-expected oil demand from Germany, Italy, and Turkey.

In the non-OECD region, oil demand growth was relatively similar to last month’s expectations, with a minor upward adjustment to Other Asia for 1Q19,” the report says.

On the other hand, demand in Latin America and the Middle East continued to show signs of weakening, though remaining within the previous projections, said OPEC.

World oil demand in 2018 was kept relatively unchanged from last month, indicating growth of 1.41 mb/d, for total global product demand to average 98.73 mb/d, according to the cartel.

“In the OECD region, oil demand grew by 0.39 mb/d, solely led by OECD Americas. In the non-OECD region, growth was at around 1.02 mb/d, with lower Chinese oil demand growth compared with 2017. Nevertheless, Other Asia led oil demand growth in 2018, with 0.42 mb/d, followed by China with 0.39 mb/d.”


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