Mexican Media Brands
IEA: Oil Prices Likely to Remain High through 2019
Rising oil prices and uncertain trade issues are likely to slow growth in oil demand through 2019 and keep supply in alignment with consumption, according to the Paris-based International Energy Agency.
#economics
Share
Rising oil prices and uncertain trade issues are likely to slow growth in oil demand through 2019 and keep supply in alignment with consumption, according to the Paris-based International Energy Agency.
IEA notes that supply and demand are approaching historic peaks of 100 million barrels per day. The price of Brent crude, the international petroleum standard, has climbed from less than $71 per barrel in mid-August to more than $80 this month.
Traders blame a variety of production issues that have kept output in check, including a decision by the Organization of the Petroleum Exporting Countries to gradually offset the declining availability of embargoed crude from Iran rather than hiking production quickly. The cartel says its output rose by 132,000 bpd to 32.8 million bpd in September.
IEA says economic uncertainties, especially among emerging markets, has prompted it to lower its demand outlook for 2019 by 110,000 bpd. Yesterday OPEC reduced its forecasts by 80,000 bpd for this year and 50,000 bpd for 2019. The cartel cites the prospects of slower economic growth in both industrialized an emerging markets.
RELATED CONTENT
-
VW Warns of Higher Costs to Develop EVs
CEO Herbert Diess says the €20 billion ($23 billion) Volkswagen AG has budgeted to electrify its entire vehicle lineup won’t be enough to meet that goal.
-
Mazda, CARB and PSA North America: Car Talk
The Center for Automotive Research (CAR) Management Briefing Seminars, an annual event, was held last week in Traverse City, Michigan.
-
Tariffs on Autos: “No One Wins”
While talk of tariffs may make the president sound tough and which gives the talking heads on cable something to talk about, the impact of the potential 25 percent tariffs on vehicles imported to the U.S. could have some fairly significant consequences.