IEA says global oil demand growth slows

IEA says global oil demand growth slows
In Categories: Capital markets
Posted at 20:31 by John McDermott High oil prices and weaker economic growth have “dramatically” curtailed the expansion of global oil demand, with the world registering a zero increase in June, according to the International Energy Agency, reports the FT. The IEA’s monthly oil market report, released on Wednesday, disclosed a substantial cooling of demand and an increase in supply. Saudi Arabia raised its output by a further 100,000 barrels a day to reach 9.8m b/d in July, the highest level for 30 years. The kingdom has now increased production by 1.1m b/d since January, meaning that Opec has fully compensated for the loss of Libyan output. But high prices have also led to falls in consumption. Total demand for oil products in Asia fell by 500,000 b/d between May and June, declining from 20.6m b/d to 20.1m b/d. This decline was led by China, where oil demand fell by 1.5 per cent between May and June. Overall, the IEA has trimmed its forecast of global oil demand this year by 100,000 b/d, saying it will average 89.5m b/d.