Global economic uncertainty threatens oil demand: IEA

PARIS: Concerns over the health of the global economy, marked by trade dispute, forced the International Energy Agency on Friday to lower its growth forecast for oil demand for 2019 and 2020. “There have been concerns about the health of the global economy expressed in recent editions of this report and shown by reduced expectations for oil demand growth,” the Paris-based agency said in its monthly report.

“Now, the situation is becoming even more uncertain: trade dispute remains unresolved and in September new tariffs are due to be imposed.”

“Tension between the two has increased further this week, reflected in heavy falls for stock and commodity markets. Oil prices have been caught up in the retreat.” It also noted the International Monetary Fund’s recent downgrading of its economic outlook. The IEA thus revised downwards its estimates for growth in global oil demand for this year by 0.1 million barrels per day to 1.1 mbd.