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Tuesday, 18 June 2019 15:19

EIA cuts forecasts for growth in oil demand Featured

EIA cuts forecasts for growth in oil demand

International Energy Agency has cut its forecast for growth in oil demand in 2019. The forecast for growth in oil demand for this year has been lowered by 90,000 barrels per day/ down to 1.3 million barrels per day. According to estimates of IEA, global oil demand will average 100.4 million barrels per day in 2019.

The demand for OPEC’s oil will make 30.9 million barrels per day in the II quarter and reduce down to 30.2million barrels per day in the second half of the year. “The changes reflect much lower indicators for 2018 than anticipated in major consumer countries such as Egypt, India, Indonesia and Nigeria”, IEA report says. The data for 2019 showed that the demand in Brazil, China and Japan turned out lower than the estimates of the agency. Due to the unexpected weak demand, oil stocks grew by 700,000 barrels per day in the first quarter. Increase of supplies by non-OPEC oil producers, especially the USA, will provide sufficient supply on the world market in the second quarter.

Production of oil and condensates in the USA is expected to grow by 1.7 million barrels per day this year.

World oil supplies fell by 300,000 barrels per day in April due to the decline of supplies from Canada, Kazakhstan, Azerbaijan and Iran.

OPEC’s oil production increased by 60,000 barrels per day, up to 30.21 million barrels per day against the background of production growth in Libya, Nigeria and Iraq, IEA reported. In April the production volume by OPEC countries was lower by about 440,000 barrels per day, which was agreed within the frame of the OPEC+ deal. Oil production in Saudi Arabia was 500,000 barrels per day below the agreed level.

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