Oil demand on track for growth to 1.85 mbpd in 2018: Goldman Sachs

Global oil demand growth is still on track to reach 1.85 million barrels per day (mbpd) this year, despite recent signs of a slight slowdown, Reuters reported, citing Goldman Sachs’ 2018 forecasts, which were reissued on Wednesday.

“We continue to expect that the broad macro set-up for 2018 will remain supportive of oil demand and our 2018 demand growth forecast remains 1.85 (million bpd), well above consensus expectations,” Goldman’s analysts said.

As many economic data were below market expectations last week, and trade disputes and tariffs could reduce oil demand, the impact is likely to be gradual and could be offset by a weaker dollar.

This demand outlook exceeds growth from shale and other non-OPEC producers this year, and will lead to a further drop in stocks in Q3 to below their five-year average levels, prompting another rally in prices, the bank added.

West Texas Intermediate (WTI) crude oil prices added 0.05 percent to $61.18 bbl on Thursday. Brent crude was trading 0.11 percent lower at $64.27 bbl.