The oil demand outlook for growth in 2019 has lowered due to rotting prospects for world trade, the International Energy Agency (IEA) said on Friday, although stimulus packages and developing countries should boost growth going into 2020.
The Paris-based IEA, which coordinates the energy policies of industrial nations, revised down its 2019 demand growth estimate by 100,000 barrels to 1.2 million barrels per day (bpd) but said it would climb to 1.4 million bpd for 2020.
The IEA in its monthly oil report said, “the main focus is on oil demand as economic sentiment weakens … The consequences for oil demand are becoming apparent.”
“The worsening trade outlook (is) a common theme across all regions”, it added.
The IEA wrote, “stimulus packages are likely to support growth in the short term. In addition, the major central banks have stopped or slowed interest rate increases, which should support growth in 2019 and 2020.”
Surging US supply as well as gains from Brazil, Canada and Norway would contribute to an increase in the non-OPEC supply of 1.9 million bpd this year and 2.3 million bpd in 2020.
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