EIA: Global trade slowdown presents downside risks to oil consumption

Oil & Gas Journal: Global oil consumption will rise by 1.8 million b/d in both 2018 and 2019, according to the US Energy Information Administration’s latest Short-Term Energy Outlook. And although the forecast was revised higher from EIA’s previous STEO, which pegged a 1.7 million-b/d rise for both 2018 and 2019, a slowdown in global trade could affect oil demand and presents downside risks to worldwide oil consumption, EIA said. This reflects the fact that both the US and China announced potential tariffs on several billion dollars’ worth of each other’s goods in March.

Meantime, continuing draws in US and global oil inventories as well as actual and potential supply disruptions put upward pressure on crude oil prices in the past month, when Brent crude oil spot prices averaged $66/bbl.

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