Global oil de­mand to slow de­spite China im­port gain

The Star (Kenya) - - News Business -

Global oil de­mand will only rise by 1.2 mil­lion bar­rels per day in 2017, com­pared with a 1.8 mil­lion in­crease in 2016, de­spite gains in Chi­nese con­sump­tion, the chief of the In­ter­na­tional En­ergy Agency said yes­ter­day. Speak­ing on the side­lines of Sin­ga­pore’s In­ter­na­tional En­ergy Week, the IEA’s ex­ec­u­tive di­rec­tor Fatih Birol said oil de­mand growth could weaken fur­ther if prices keep ris­ing. In­ter­na­tional bench­mark Brent crude oil fu­tures have al­most dou­bled from their Jan­uary mul­ti­year lows to more than $50 (Sh5,075) per bar­rel. Bi­col said the slow­down in de­mand growth would likely mean that a re-bal­anc­ing of oil mar­kets in terms of sup­ply and de­mand will not hap­pen un­til the sec­ond half of 2017. “If there is an in­crease in the prices as a re­sult of this (OPEC-led) in­ter­ven­tion, we may well see a re­sponse from higher cost pro­duc­tion,” Birol said.

Newspapers in English

Newspapers from Kenya

© PressReader. All rights reserved.