The latest monthly reports from the IEA and Opec released this week both flag up faltering global oil demand as a development that could slow market rebalancing. The IEA states that “feeble growth in OECD countries” was responsible for year-on-year demand growth slowing from 1.5mn b/d in 3Q 2018 to 950,000 b/d in Q4. Opec meanwhile says a “slowdown in global economic growth is also expected to contribute to somewhat lower oil demand requirements in 2019.”
The IEA left expectations of demand growth in 2019 unchanged at 1.38mn b/d this month, but revised down its 2018 demand figure by 20,000 b/d to 99.22mn b/d. Meanwhile Opec revised down its demand growth expectations by 60,000 b/d against last month’s report to 1.24mn b/d, as well as bringing its 2018 demand figure down by 40,000 b/d. (CONTINUED - 223 WORDS)
