IEA lowers oil demand outlook as result of rising prices

Economy 10/12/2018, 10:25 AM
IEA lowers oil demand outlook as result of rising prices

The International Energy Agency (IEA) warned in its monthly report released on Friday that the surge in oil prices will result in lower demand growth than was earlier expected. "Our position is that expensive energy is back … And it poses a threat to economic growth," the IEA said. "This is due to a weaker economic outlook, trade concerns, higher oil prices and a revision to Chinese data."

The organization lowered its demand outlook by 110,000 to 1.3 million barrels per day (mb/d) in 2018 and 1.4 mb/d in 2019. "This is due to a weaker economic outlook, trade concerns, higher oil prices and a revision to Chinese data," the report noted. On the other hand, the IEA stressed that global oil supply is growing fast and is currently 2.6 mb/d higher than it was a year ago.

Oil futures continued to trade with gains following the release as Brent for December deliveries climbed 0.97% to go for $81.05 per barrel at 10:15 am CET and West Texas Intermediate (WTI) for November deliveries jumped 1.07% to $71.75 per barrel at 10:14 am CET.

Breaking the News / NP

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F WBS+0.77%

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