IEA significantly cuts forecast for global oil demand growth

The International Energy Agency (IEA) today significantly cut its forecast for this year’s growth in global oil demand, citing escalating trade conflicts. The Organization of the Petroleum Exporting Countries (OPEC) also lowered its outlook for global oil demand on Monday.

„The deteriorating outlook for the global economy amid a sharp escalation in trade tensions in early April has prompted us to lower our forecast for this year’s growth in oil demand,“ the IEA said today in its regular monthly report on the oil market.

The IEA now expects global oil demand to rise by around 730,000 barrels per day this year. In its previous report, it had forecast an increase of more than one million barrels per day.

„Growth is expected to slow further next year, to 690,000 barrels per day. Lower oil prices will only partly offset the weak economic environment,“ the IEA said.