Nick Cunningham, Oilprice.com, summarizes yesterday’s real ease of the EIA’s monthly Short Term Energy Outlook:
“In its latest Short-Term Energy Outlook, the EIA downgraded its forecast for global oil demand growth to just 1.1 million barrels per day (mb/d) this year, down from the 1.2 mb/d the agency forecasted last month and from 1.4 mb/d in May.
The “increasingly weak outlook” for demand could upend global balances. In June, the EIA thought that global inventories would decline by a rather significant 0.3 mb/d in 2019, as OPEC+ cuts and still robust consumption tightened up the oil market.
What a difference a month makes. The souring economic picture now means that inventories could actually increase by 0.1 mb/d, the agency said in its latest report. In other words, even with the OPEC+ cuts extended, the oil market could remain in a state of surplus throughout this year and next.”
Here is the link…