Daily Management Review

IEA lowers forecast for oil demand growth for 2019


The International Energy Agency (IEA) lowered its estimate for oil demand growth in 2018 and 2019.

This year, the world will need very little additional oil from OPEC, as growth in US production will offset reduced supplies from Iran and Venezuela, the agency said.

Estimated growth in oil demand in 2018 was reduced by 70 thousand barrels per day to 1.2 million bpd.

The forecast of oil demand growth for the current year has been reduced by 90 thousand bpd to 1.3 million bpd. The global demand for oil, according to IEA estimates, will average 100.4 million bpd in 2019.

"The changes reflect lower-than-expected data for 2018 in large consuming countries, such as Egypt, India, Indonesia and Nigeria," the IEA said in a statement.

Data for this year showed that demand in Brazil, China and Japan turned out to be lower than agency estimates. Due to unexpectedly weak demand, oil reserves in I quarter increased by 700 thousand bpd.

The increase in supply from oil producers outside OPEC, especially the United States, in the second quarter will ensure sufficient supply in the world market.

Oil and condensate production in the United States this year is expected to grow by 1.7 million bpd.

Worldwide deliveries of oil in April fell by 300,000 bpd, helped by falling supplies from Canada, Kazakhstan, Azerbaijan and Iran.

OPEC oil production rose by 60 thousand bpd to 30.21 million bpd against the background of increased production in Libya, Nigeria and Iraq, the IEA reported.

In April, OPEC countries produced about 440 thousand bpd less oil than agreed in the OPEC + transaction. Oil production in Saudi Arabia was 500 thousand bpd below the agreed level.

The agency expects that the demand for OPEC oil will be 30.9 million bpd in the second quarter and will drop to 30.2 million bpd in the second half of the year.

Oil production in Iran has already fallen to its lowest level since September 2013 - 2.6 million bpd. This month, production in the country could fall to a minimum since the 1980s due to US sanctions, the IEA warned.

source: reuters.com

Science & Technology

China is developing technology to capture greenhouse gases

IEA: The growth of renewable energy is slowing

Google introduces new smartphone and beta Android Q

SpaceX’s Dragon Crew Capsule Test Met With Anomaly

New Security Study Finds Millions Use 123456 As Password For Email Accounts

The Devastating Panama Disease Could Spell Extinction For Bananas

Walmart to hire 4 thousand robot cleaners

Samsung Galaxy Fold: Expensive but fragile

USA and South Korea launch the first commercial 5G networks

Deliveries of AR/VR devices to grow by 54% in 2019

World Politics

World & Politics

The Earth Is ‘Not On Track’ To Tackle Global Warming: The U.N. Secretary General

Is Finland’s aging population turning the country into Japan?

The United States will impose new duties on Chinese goods on Friday

Jyrki Katainen: EU is not a milk cow

Oil lobby and the planet's future

Trump files a lawsuit against Deutsche Bank and Capital One

Trump Urged Abe To Influence Japanese Auto Firm To Produce More Vehicles In The U.S.

IEA: Iraq will enter the top three oil leaders