According to International Energy Agency (IEA), demand for oil across the globe would remain muted because of worsening Chinese business sentiment, a slowdown in European economies and the impact of budget cuts by the US government.
In its monthly oil market report, the agency said the above factors seem to delay further an elusive turnaround in global economic, and in turn oil demand, growth.
It may be recalled that China, European countries (collectively, and US are the largest consumers of crude oil.
Therefore, the agency is bearish on oil demand for 2013, trimming its forecast for oil demand growth by 20,000 barrels per day (bpd) to 820,000 bpd.
The subdued growth rate of oil demand now looks increasingly entrenched in the face of high oil prices and weak economic growth, it said.
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