BAKU, Azerbaijan, Oct. 30
By Leman Zeynalova – Trend:
Global consumption of crude oil is projected to grow by 1 percent (1 mb/d) in 2019, a slight slowdown relative to 2018, Trend reports citing the World Bank (WB).
Non-OECD countries are expected to account for all of the increase in consumption, with China alone accounting for half of the rise, according to the report.
In contrast, the WB expects that consumption in OECD countries will remain flat, with declines in Japan and Europe balanced by an increase in the United States.
The expected increase in consumption is markedly slower than initially forecast by the EIA, IEA, and OPEC, and reflects a broad-based slowdown in global growth. Indicators of activity, such as industrial production, trade volumes, and business surveys, have deteriorated sharply this year, according to the report.
The report shows that global sales of passenger vehicles, a major barometer of oil demand growth, have continued to fall, with particularly large declines in China.
“Expectations for global growth both for 2019 and 2020 have been revised down substantially, including in emerging market and developing economies. Since these economies tend to have a larger income elasticity of demand for commodities than advanced economies, their slowdown has weighed disproportionately on energy demand.”
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Follow the author on Twitter: @Lyaman_Zeyn