Baku, Azerbaijan, Aug.9
By Leman Zeynalova – Trend:
Global demand fell 160,000 barrels per day (b/d) year-on-year in May, the second annual fall seen in 2019, Trend reports with reference to the International Energy Agency.
“In January to May it was up only 520 kb/d, the lowest increase for the period since 2008. Chinese oil demand was revised upwards, but India and the US show weakness,” reads the report.
IEA has lowered our global growth forecasts for 2019 and 2020 by 100 kb/d and 50 kb/d, to 1.1 mb/d and 1.3 mb/d, respectively.
“Oil demand growth estimates have already been cut back sharply: in 1H19, we saw an increase of only 0.6 mb/d, with China the sole source of significant growth at 0.5 mb/d. Two other major markets, India and the United States, both saw demand rise by only 0.1 mb/d. For the OECD as a whole, demand has fallen for three successive quarters,” said the report.
In this report, growth estimates for 2019 and 2020 have been revised down by 0.1 mb/d to 1.1 mb/d and 1.3 mb/d, respectively.
“There have been minor upward revisions to baseline data for 2018 and 2019 but our total number for 2019 demand is unchanged at 100.4 mb/d, incorporating a modest upgrade to our estimate for 1Q19 offset by a decrease for 3Q19. The outlook is fragile with a greater likelihood of a downward revision than an upward one,” said IEA.
---
Follow the author on Twitter: @Lyaman_Zeyn