The International Energy Agency (IEA) has trimmed global oil demand growth for the rest of the year and 2015, calling the recent slowdown in demand “nothing short of remarkable”.
Its latest Oil Market Report expects global demand to rise by 0.9 million barrels per day (mb/d) this year – 65,000 b/d less than previously predicted – and by 1.2 mb/d next year – down by 100,000 b/d since its last forecast.
The report stated: “While demand growth is still expected to gain momentum, the expected pace of recovery is now looking somewhat more subdued.”
The IEA said it reduced its forecast due to a slowdown in demand in the second quarter of 2014 and a “weaker outlook” for Europe and China.
The second-quarter growth in usage dropped to a two and a half year low, spurring Saudi Arabia to export the least since September 2011, it added.
The oil-rich nation cut its output by 330,000 barrels a day last month in response to lower demand from its customers and a shift in the oil producer’s focus toward Asian markets, according to the report.