Increasingly weak demand… Oilprice.com – Commodity Research Group

July 10, 2019 by Jim Colburn Leave a Comment

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…

Commodity Research Group (CRG), founded by veteran analyst Edward Meir, is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct commodity hedging strategies.

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