Int'l Energy Agency Keeps Forecast on Oil Demand Growth Unchanged for 2018, 2019 - Report

MOSCOW (Pakistan Point News / Sputnik - 13th December, 2018) The International Energy Agency (IEA) has kept its forecast on oil demand growth unchanged for 2018 and 2019 at the level of 1.3 million barrels per day and 1.4 million barrels per day respectively, the IEA said in its December report released on Thursday.

"Our estimate of 2018 oil demand growth remains unchanged at 1.3 mb/d. Data for September and October confirm an expected slowdown due to relatively high prices seen until October. Subsequently, Brent crude oil prices have moved from $86/bbl to below $60/bbl, before recovering slightly after last week's meeting of OPEC and some non-OPEC producers. The forward curve has shifted downwards and the lower prices that are implied should help support demand in 2019," the report said.

During the OPEC session earlier in December, participants of the OPEC-non-OPEC oil output cut deal agreed to reduce overall production by 1.

2 million barrels per day starting from the next year, with a view to signing the charter on future long-term cooperation in the first quarter of 2019. OPEC member states will cut production by 800,000 barrels per day and non-OPEC countries by 400,000 barrels per day.

"The price impact is offset, however, by slightly lower economic growth assumptions and downward revisions to our projections for certain countries impacted by weak currencies, such as Turkey, or countries facing collapse, such as Venezuela. Therefore, our projection for oil demand growth in 2019 remains unchanged, at 1.4 mb/d," the report read.

Thus, the global demand for oil in 2018 will reach 99.2 million barrels per day, while in 2019, it will reach 100.6 million barrels per day.