Oil Demand Drops as Forecasted by the IEA

Demand growth in the oil markets will be more subdued than previously expected, according to the International Energy Agency, which has once again downgraded its projections for the rest of the year.

“The recent slowdown in demand growth is nothing short of remarkable,” the IEA said in a new monthly report on Thursday morning. “While demand growth is still expected to gain momentum, the expected pace of recovery is now looking somewhat more subdued.”

Its latest statistics show that demand growth slowed to below 500,000 barrels per day (b/d) in the second half of 2014 on a yearly basis. This was its lowest level in two and a half years, it added, leading the organization to revise demand projections downwards for the third quarter.

Additionally, global oil demand growth for has been lowered to 900,000 million b/d in 2014 and 1.2 million b/d for 2015. The pronounced slowdown in demand growth and a weaker outlook for Europe and China underpinned these changes, it said. In August, the IEA lowered its forecast for 2014, to 1.0 million b/d.

via
CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza