Home / Energy/ Global oil demand to grow steadily in 2019 but trade risks loom: IEA

Global oil demand to grow steadily in 2019 but trade risks loom: IEA


Comments / {{hitsCtrl.values.hits}} Views / Monday, 18 June 2018 00:00


London (Reuters): Oil demand will grow steadily in 2019 thanks to a solid global economy and stable prices, although trade tensions remain the largest risk, the International Energy Agency said yesterday.



The IEA said it expects global oil demand to grow by 1.4 million barrels per day next year, to top 100 million bpd by the second quarter of the year. The agency expects demand to grow at the same rate this year, unchanged from its last report in May.

“A solid economic background and an assumption of more stable prices are key factors. Risks include possibly higher prices and trade disruptions. Some governments are considering measures to ease price pressures on consumers,” the Paris-based agency said in its monthly report. “There is the possibility of a downward revision to our economic assumptions in the next few months. The world economy is feeling some pain from higher oil prices.”

The oil price has risen by a third to around $77 a barrel LCOc1, close to its highest since late 2014, since OPEC and other producers including Russia began cutting production in January 2017 by 1.8 million bpd.

The Organisation of the Petroleum Exporting Countries meets later this month to discuss its supply policy, particularly in light of protracted declines in Venezuela and the prospect of new US sanctions on Iran later this year.

The group, together with its partners, may consider raising output to compensate for any supply shortfalls.

“If the other 12 OPEC members were to continue pumping at the same rate as May, a potential supply gap could emerge and lead to a draw on stocks of more than 1.6 million bpd in the fourth quarter of 2019,” the report said.

Supply from outside OPEC is expected to grow by 2 million bpd this year, led predominantly by the United States, before easing to around 1.7 million bpd next year, the IEA said.


Share This Article


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Laurels of ‘Living Together’: Refreshing reflections

Tuesday, 25 September 2018

It was a memorable evening with a mega gathering for a meaningfully different reason. It was not just another book launch with ego-boosting speeches about the author. It was also not an event where a popular politician coming late and preaching about


The fate of the rupee: Central Bank is caught with ‘Devil’s Alternative’

Tuesday, 25 September 2018

Not all are losing when the rupee depreciates The recent depreciation of the rupee against the US dollar in the market has apparently driven the entire nation to a panic mode. While it had been a field day for the media and opposition law makers, the


Southbound rupee and northbound CoL

Tuesday, 25 September 2018

The Sri Lankan Rupee hit a record low of 170 per $ last week, and the Minister of Finance warns of further depreciation. This is inevitable given the chaotic state of the nation’s economy. While the rupee turns south, CoL (cost of living) has no o


In the desert of Tamil films, actor Sivaji Ganesan was an oasis

Saturday, 22 September 2018

‘Indian Film,’ first published in 1963 and co-authored by former Columbia University Professor Erik Barnouw and his student Dr. Subrahmanyam Krishnaswamy, is considered a seminal study of the evolution and growth of Indian cinema. The book is cit


Columnists More