The Energy Information Administration forecasts global oil demand to grow by 1.44 million barrels per day this year on average, which is down by 10,000 bpd from its previous projection according to its monthly report issued on Tuesday.
At the same time, however, the EIA revised up its 2017 global oil demand growth forecast to 1.49 million bpd, an increase of 20,000 bpd.
The agency’s administrator, Adam Sieminski, said that this growth – both this year and next – will be driven mainly by China and India, while European demand could weaken after Britain’s exit from the European Union.
US demand, on the other hand, is set for a 160,000-barrel-a-day growth this year, according to EIA estimates. That’s down from a rate of 220,000 bpd projected earlier. Next year, demand in the world’s top consumer of crude should grow by 120,000 bpd, up from an earlier estimate of 60,000 bpd.
This post was published at FinancialSense on 07/13/2016.
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