The International Energy Agency (IEA) may cut its growth estimates for the global oil demand for 2019 and 2020 in case the global market crumbles. Fatih Birol, the chief of IEA stated on Friday, “Should the global economy incapacitate further.”
The Paris-based organization a month ago cut its global oil market growth estimates for 2019 and 2020 to 1.1 million and 1.3 million barrels for per day as the trade woes strained global oil utilization, causing the demand to develop at its slowest pace since the 2008 financial crisis.
“It will rely upon the worldwide economy. If the global economy debilitates, for which there are now some signs we may lower oil expectations,” stated Birol in the World Knowledge Forum in Seoul.
He also stated that China’s financial growth, which has tumbled to the most minimal in about three decades, could likewise mean there would be a few corrections, as Beijing seems to be “a device of the demand growth.”
China’s economic growth eased back to 6.2 percent in the subsequent quarter, its weakest pace in 27 years, pulled down by weaker demand amidst increased trade sanctions by the US.
China is the world’s biggest oil exporter and second-biggest crude oil consumer.
The IEA chief stated, however, at the very time, we must not forget low oil costs also sets upward pressures on the market demand.
Global crude benchmark Brent is floating around $62 a barrel, while US West Texas Intermediate is lounging around $56, burdened by tensions over easing back global financial growth that could depress oil demand.
Birol told media that enhancing oil and petroleum gas imports; however much as could reasonably be expected is an approach to adapt to geopolitical risks.
“Particularly for natural gas, this is an enriching time to expand. Purchasers hands are a lot more grounded,” he replied. “Certainly it’s an opportunity to make new agreements and great prices…the competition currently it’s not among purchasers; however, it’s among merchants.” The National reported.