Global oil use may touch 100m bpd soon

IF CONSUMPTION HITS THESE LEVELS IN NEXT THREE MONTHS, OIL PRICES ARE ALSO LIKELY TO FEEL THE PULL

| |

The world’s oil consumption will top 100 million barrels per day (bpd) in the next three months, putting upward pressure on prices. But emerging market crises and trade disputes could dent this demand, the International Energy Agency (IEA) said.

Paris-based IEA maintained its forecast of strong growth in demand this year of 1.4 million bpd and another 1.5 million bpd in 2019, unchanged from its previous projection.

“Things are tightening up,” the agency that advises Western governments on energy policy said in its monthly report. “The price range for Brent of $70-$80 (Dh257-Dh294) per barrel in place since April could be tested.”

US sanctions on Iran’s energy industry, which come into force in November, have already cut supply back to two-year lows, while falling Venezuelan output and unplanned outages elsewhere will also keep the balance between supply and demand tight. But it said rising demand could also be checked.

“As we move into 2019, a possible risk to our forecast lies in some key emerging economies, partly due to currency depreciations versus the US dollar raising the cost of imported energy. In addition, there is a risk to growth from an escalation of trade disputes,” the agency said.

Rising dollar

■

Growth rate for global economy forecast by Wall Street

Too little was done in the aftermath of the financial crisis a decade ago to stimulate aggregate demand. A more equal income distribution operates to increase aggregate demand.” Lawrence H. Summers |