“Trade tensions might escalate and lead to slower economic growth, and in turn, lower oil demand,” the International Energy Agency (IEA) warned in its closely-watched oil market report, released this Friday.
The latest monthly report further added that a US plan to impose targeted crude sanctions against Iran could significantly impact global supply and exhaust the world's spare oil capacity cushion.
• Raises 2019 oil demand growth forecast by 0.11 million bpd, now seen at 1.49 million bpd.
• Sees risk to 2019 oil demand growth from trade disputes and rising prices if supply is constrained.
• Concerns about the stability of oil supply have cooled somewhat, at least for now.
• Non-OPEC oil supply growth forecast raised by 100k bpd for 2018 and 2019.
• 2018 forecast seen at 2.0 million bpd while 2019 forecast at 1.85 million bpd.
• Maintaining global supply might be very challenging.
• That is due to Iran sanctions and perhaps production problems elsewhere.
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