Global oil demand growth to increase 1.2mb/d 2H19 - OPEC

Lagos -- Despite lower economic growth rates across the world, the Organization of the Petroleum Exporting Countries, OPEC, has forecast a growth of 1.2 million barrels per day in global oil demand for the second half of 2019, 2H19 .

The group’s Monthly Oil Market Report, MOMR, for June said world oil demand growth will improve “seasonally”,

from the sluggish performance seen in the first half of 2019, with growth in the second half of the year forecast at 1.2 mb/d year-onyear.

Out of the 1.2mb/d boost, the Organisation for Economic Cooperation and Development, OECD, region is forecast to increase by 0.2 mb/d year on year in 2H19, on the back of growth in OECD Americas, driven by solid light distillate demand.

In contrast, OECD Europe is forecast to contract due to slower economic momentum, while OECD Asia Pacific will decline on lower petrochemical feedstock demand.

In the non-OECD region, oil demand is projected to increase by 1.0 mb/d y-o-y in 2H19 supported mainly by Asia, particularly India.

Oil demand in China is expected to continue growing despite economic concerns and sharply lower vehicle sales.

Growth in transportation fuels, particularly aviation fuels, as well as in petrochemical feedstock should outweigh declines elsewhere in 2H19. However, OPEC said significant downside risks from escalating trade disputes spilling over to global demand growth remain.

Non-OPEC oil supply in 2H19 is forecast to increase by 1.8 mb/d, compared to 1H19 and