Global crude oil demand is expected to decline by 33% in 2016

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IEA: Global crude oil demand to fall by 33% in 2016 http://www.100ppi.com October 26, 2015, 10:19 – HuiNeng Network, Business Society. According to a report in The Wall Street Journal, the growth rate of global crude oil demand this year reached a five-year high due to the sharp drop in oil prices. However, experts expect that next year, as demand from emerging Asian markets such as China slows down, the growth rate of global crude oil demand could drop by about one-third compared to this year, continuing to put pressure on an already oversupplied crude oil market. 　　Due to short-covering, international oil prices rose on Thursday (October 22), with West Texas Intermediate crude rising by over 1% to $45.71 per barrel. London Brent crude rose 1% to $48.36. 　　International oil prices have fallen sharply since mid-2014, boosting the demand for fuel among drivers, consumers, and businesses. However, experts believe that the economic slowdown in many Asian countries, including China, will continue to dampen market demand. However, experts do not agree on to what extent the increase in demand will slow down. 　　Rob Haworth, a senior investment strategist at Bank of America Wealth Management, said that although there has been growth in crude oil demand this year, it remains a major question whether this growth trend can be maintained next year. 　　The International Energy Agency (IEA) predicts that global daily crude oil demand will increase by only 1.2 million barrels next year, which represents a reduction of about one-third compared to this year’s increase of 1.8 million barrels per day – the highest level in five years. 　　OPEC estimates that average daily demand will increase by 1.25 million barrels next year, with some experts forecasting a lower figure. 　　Although U.S. crude oil production has declined this year, major oil-producing countries from Saudi Arabia to Russia are increasing their output to defend their market shares, keeping the supply of crude oil in excess of demand. Meanwhile, the growth in global crude oil demand continues to slow down, putting significant pressure on oil prices. 　　The International Monetary Fund (IMF) has lowered its forecast for global economic growth this year from 3.3% to 3.1%, the lowest rate since the financial crisis. The global economic slowdown will increase uncertainty in the oil market. 　　The main reason for the strong demand for crude oil this year is the sharp drop in oil prices, which caused gasoline prices in the United States to fall by a third compared to last year. This stimulated American consumers’ demand for fuel-intensive sport utility vehicles, while countries such as China took advantage of the low oil prices to increase their strategic oil reserves. 　　(Article source: HuiNeng Network) http://www.100ppi.com/news/detail-20151026-672031.html