IEA cuts global oil demand forecast for second straight month

The International Energy Agency (IEA) has cut its estimate for global oil demand growth for the second consecutive month to 1.2 million barrels per day (bpd) in 2019, before it rebounds to around 1.4 million bpd in 2020, citing intensifying trade concerns amid fears of a global recession.

The Paris-based agency said in its monthly report on Friday that several factors lead to the slowdown in global oil consumption, including a warm winter in Japan, a slowdown in the petrochemicals industry in Europe, tepid gasoline and diesel demand in the United States and the worsening trade outlook.

“Until recently, the focus has been on the supply side with the familiar list of uncertainties – Iran, Venezuela, Libya, and the Vienna Agreement – lifting Brent prices above $70 per barrel in early April and keeping them there until late May. Now, the main focus is on oil demand as economic sentiment weakens,” the report said.