The IEA has cut its 2019 estimate for oil demand
The IEA has cut its 2019 estimate for oil demand in its latest monthly report, blaming trade tensions and the associated consequences on the outlook for global growth. The agency stated that the worsening trade outlook is "a common theme across all regions," and that "the consequences for oil demand are becoming apparent." Front-month WTI prices are presently down 0.3% on the day, at $52.12. Crude prices rallied yesterday following news that two oil tankers had been attacked in the Gulf of Oman, which the U.S. has blamed on Iran. Developments on this front warrant close scrutiny, though for now crude looks to be remaining in the grip of an overall bear trend. WTI benchmark prices are down 3.6% w/w and by over 16% from month-ago levels. The IEA stated that U.S. sanctions on Iranian and Venezuelan supply, and OPEC-led output quotas, along with disrupted Libyan supply, are only having a limited impact on supply, while surging U.S. supply and increased production from Brazil, Canada and Norway would add to an increase in non-OPEC supply, estimated to be 1.9 M bpd this year and 2.3 M bpd in 2020.