Oil demand forecasts were revised sharply downwards this week as the trade war between the world’s two largest economies, the US and China, escalates. The ‘reciprocal tariffs’ announced by US President Donald Trump on 2 April have wreaked havoc on oil prices, with Brent closing below $68/B on 17 April, down from the mid $70s at the start of the month. And despite this week’s price respite, fears remain that tariffs and counter-measures are set to slow economic activity, potentially stoking a global recession.
The IEA, the energy arm of the OECD club of mostly rich nations, on 15 April slashed its expectations for oil demand growth this year by more than 300,000 b/d to 730,000 b/d, its lowest forecast since it began publishing 2025 numbers. The IEA says “roughly half of this downgrade occurs in the United States and China, with most of the remainder in trade-oriented Asian economies.” (CONTINUED - 1812 WORDS)
