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IEA cuts 2019 estimate for oil demand growth on global trade worries

LONDON (Reuters) – The outlook for oil demand growth in 2019 has dimmed due to worsening prospects for world trade, the International Energy Agency (IEA) said on Friday, although stimulus packages and developing countries should boost growth going into 2020.

The Paris-based IEA, which coordinates the energy policies of industrial nations, revised down its 2019 demand growth estimate by 100,000 barrels to 1.2 million barrels per day (bpd), but said it would climb to 1.4 million bpd for 2020.

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The main focus is on oil demand as economic sentiment weakens … The consequences for oil demand are becoming apparent,The worsening trade outlook (is) a common theme across all regions

the IEA said in its monthly oil report.

The oil demand growth forecast assumes the maintenance of U.S. and Chinese tariffs imposed on goods in 2018, but the IEA said it had not factored in further U.S. tariffs announced in May.

The IEA also attributed lackluster demand growth in the first half of the year to a slowdown in the petrochemicals industry in Europe, warmer than average weather in the northern hemisphere and stalled U.S. gasoline and diesel demand.

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