IEA says oil demand growth at lowest since 2008

Andrew Cummings
August 10, 2019

West Texas Intermediate Crude oil futures for September ended up $1.96, or about 3.7%, at $54.50 a barrel.

Lending some support to prices on Thursday, inventories at Cushing, Oklahoma, the delivery point for WTI, fell about 2.9 million barrels in the week to August 6, said traders, citing data from market intelligence firm Genscape.

US sanctions drove down Tehran's July exports of crude oil by 130,000 bpd to 400,000 bpd, the lowest since the 1980s.

"Now, the situation is becoming even more uncertain: the US-China trade dispute remains unresolved and in September new tariffs are due to be imposed".


China's yuan strengthened against the dollar and its exports unexpectedly returned to growth in July on improved global demand despite US trade pressure.

Background: Saudi Arabia and other oil-producing countries have already significantly reduced their oil production in recent months, while continued expansion in the North American oil sector will increase pressure on OPEC members.

OPEC and its allies have agreed to cut production by 1.2 million b/d through to the end of the first quarter of 2020 to rebalance the market.

Oil prices rose on Friday, supported by expectations of more production cuts by OPEC amid fears the US-China trade row could lead to a global slowdown, curbing demand for crude.


"Saudis are scrambling to send a signal that will stabilise oil markets".

USA sanctions drove down Tehran's July exports of crude oil by 130,000 bpd to 400,000 bpd, the lowest since the 1980s.

Saudi Arabia, de facto leader of the OPEC, plans to maintain its crude oil exports below 7 million barrels per day in August and September to bring the market back to balance and help absorb global oil inventories, a Saudi oil official said on Wednesday.

Geopolitical tensions over the safety of oil tankers passing through the Persian Gulf remained unresolved as Iran refused to release a British-flagged tanker it seized last month.


U.S. energy firms this week reduced the number of oil rigs operating for a sixth week in a row, cutting six rigs and bringing the total count down to 764, the lowest since February 2018, General Electric Co's Baker Hughes energy services firm said on Friday.

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