Investing.com- Oil demand growth is expected to slow down in 2019 due to trade tensions and issues in emerging markets, the Organization of the Petroleum Exporting Countries and Russia stated in its monthly report on Wednesday.
Global oil demand growth for 2019 was lowered by 20,000 barrels per day (bpd) to 1.41 million bpd while non-OPEC oil supply in 2019 was increased by 20,000 bpd to 2.15 million bpd.
Rising challenges in emerging markets and trade tensions are a risk to current global economics, OPEC said.
“A combination of monetary tightening from G4 central banks, the weakening financial situations in some emerging and developing economies, rising trade tensions and ongoing geopolitical concerns in some parts of the world constitute challenges to the current global economic growth trend,” the report said.
Meanwhile total production of OPEC countries rose by 278,000 bpd to 32.56 million bpd, lead by surge in production from Saudi Arabia of 124,000 bpd in August. Non-OPEC inventories in July stood at 43 million barrels bpd, below the five-year average and the level originally targeted by OPEC’s supply cut deal.
OPEC agreed in June to raise output at a nominal increase of 1 million barrels a day (bpd) amid pressure from the U.S. to decrease prices.
After the report, U.S. West Texas Intermediate (WTI) crude futures surged 0.88% to $69.86 a barrel by 7:31 AM ET (11:31 GMT).
Brent crude futures, the benchmark for oil prices outside the U.S., increased 0.24%, to $79.25 a barrel.