Global oil demand is forecast to rise by 1.7 million barrels per day (bpd) in 2015, according to the International Energy Agency (IEA), which would be the fastest annual increase for five years.
The secretariat at the Organization of the Petroleum Exporting Countries (OPEC) pegs demand growth at 1.5 million bpd in 2015 compared with 2014.
The U.S. Energy Information Administration (EIA) is more cautious and puts demand growth at just 1.2 million bpd.
In a measure of the uncertainty surrounding consumption, the gap between the highest and lowest forecasts is equivalent to 0.5 million bpd, 30-40 percent of the entire projected increase in demand.
All three major statistical agencies forecast China will contribute about one quarter of global demand growth in 2015, underscoring the country’s critical importance to the oil market.
But China also remains the biggest source of uncertainty because it accounts for such a high share of growth yet its economic outlook is so hard to forecast and its fuel data are so opaque.
The impact of any slowdown in China would be magnified because of its trading links across the whole Asian region.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.
Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Recommended Content
Editors’ Picks
AUD/USD tests lows near 0.6550 after dismal Aussie Retail Sales, mixed China's PMIs
AUD/USD is testing lows near 0.6550 after Australian Retail Sales dropped by 0.4% in March while China's NBS April PMI data came in mixed. Upbeat China's Caixin Manufacturing PMI data fails to lift the Aussie Dollar amid a softer risk tone and the US Dollar rebound.
USD/JPY rebounds to 157.00 after Monday's suspected intervention-led crash
USD/JPY is trading close to 157.00, staging a solid rebound in the Asian session on Tuesday. The pair reverses a part of heavy losses incurred on Monday after the Japanese Yen rallied hard on probable FX market intervention by Japan's authorities. Poor Japan's jobs and Retail Sales data weigh on the Yen.
Gold prices soften as traders gear up for Fed monetary policy decision
Gold price snaps two days of gains, yet it remains within familiar levels, with traders bracing for the US Fed's monetary policy decision on May 1. The XAU/USD retreats below the daily open and trades at $2,334, down 0.11%, courtesy of an improvement in risk appetite.
BNB price risks a 10% drop as Binance founder and ex-CEO Changpeng Zhao eyes Tuesday sentencing
Binance Coin price is dumping, with the one-day chart showing a defined downtrend. While the broader market continues to bleed, things could get worse for BNB price ahead of Binance executive Changpeng Zhao sentencing on Tuesday, April 30.
FX market still on intervention watch
Asian foreign exchange traders will be particularly attentive to any signs of Japanese intervention on Tuesday, following reports of Tokyo's involvement in the market on Monday. This intervention action propelled the yen upward from its 34-year low of 160 per dollar, setting off shockwaves of volatility.