The International Energy Agency released a report warning that current trade tensions between the U.S. and China will continue to decrease global oil demand in 2019.
The IEA released its forecast numbers for global oil demand growth and expect it to lower to 1.1 million barrels a day from 1.2 million barrels a day. This is the third time in four months that the IEA’s forecast has predicted lower global oil demand growth.
“Now, the situation is becoming even more uncertain: The U.S.-China trade dispute remains unresolved and in September new tariffs are due to be imposed,” the report said.
Oil prices and its value on the market has been a casualty of the current trade war escalations. Brent crude, has fallen 11% during August and U.S. crude has followed suit dropping 10%.
Additionally, the International Monetary Fund also has its reservations when it comes to global growth in the economy. The IMF forecasts that global GDP growth will fall by 0.1% in 2019 to 3.2%.
Analysts will look at OPEC, paying close attention to daily output levels. OPEC’s oil output decreased 2 million barrels when compared to production levels at this time last year. Current trade tensions might have an effect on further reducing output levels.