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.
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.