According to the latest Oil Market Report, the International Energy Agency (IEA) predicts slower growth in oil demand over the next five years due to the trade conflicts and the “disorderly” Brexit.
Interestingly, the trade dispute has already resulted in a slowdown in consumption in China where economic sentiment is not encouraging.
At the same time, experts predict that over the next five years, by 2024, global oil consumption will increase by 1.2 million barrels a day to 106.4 million barrels a day from 100.6 million barrels a day in 2019. In addition, the United States is expected to overtake Russia in the export of oil and petroleum products by 2024, reaching 70% growth in global oil production.
The previous five-year IEA outlook stated that the world would face a significant slowdown in global demand only in 2023. At that time, the agency said that stimulation of the growth would require additional investments after 2020.
At the beginning of the week, Brent and WTI crude oil grew at an average rate of 0.90% to the level of the previous closing price amid the statement by Saudi Energy Minister Khalid al-Falih. The official said that OPEC+ would not change the behavior strategy of the cartel until June.
