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Global oil demand will remain stronger this year than in 2018 as lower fuel prices counter slowing economic activity, Bloomberg reported, citing Neil Atkinson, head of the oil industry and markets division, International Energy Agency (IEA).
Oil consumption will expand by 1.4 million barrels a day (mbd), or nearly 1.4 percent, in 2019, slightly higher than last year’s expansion of 1.3 million.
“We have seen prices fall very significantly since the peak at the beginning of October, and that is providing some relief to consumers,” he noted despite its monthly report confirming “the mood music in the global economy is not very cheerful and the outlook could change."
He added: “Our expectation for slightly faster global demand growth in 2019 is maintained even though economic growth is likely to be slower than in 2018. The impact of higher oil prices in 2018 is fading, which will help offset lower economic growth.”
Output cuts planned by the Organization of Petroleum Exporting Countries (OPEC) and its partners are likely to “stabilize world markets, though the process will be slow”, the IEA said.
OPEC would need to cut by a significant 900,000 barrels a day this month, with its allies reducing by a further 370,000 to fully implement its agreed cutbacks, it added.
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