{"id":48356,"date":"2019-09-09T08:00:52","date_gmt":"2019-09-09T13:00:52","guid":{"rendered":"https:\/\/olduvai.ca\/?p=48356"},"modified":"2019-09-09T08:00:54","modified_gmt":"2019-09-09T13:00:54","slug":"sluggish-oil-demand-to-keep-a-lid-on-oil-prices-amid-global-recession-fears","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=48356","title":{"rendered":"Sluggish Oil Demand To Keep A Lid On Oil Prices Amid Global Recession Fears"},"content":{"rendered":"\n

Sluggish Oil Demand To Keep A Lid On Oil Prices Amid Global Recession Fears\u00a0<\/a><\/h3>\n\n\n\n

John Kemp, senior market analyst of commodities at Reuters<\/a>, cites a new report via B.P.’s finance chief that indicates global oil consumption will be less than 1 million barrels per day this year, an ominous sign that the global economy is quickly deteriorating.<\/strong><\/p>\n\n\n\n

Kemp said growth is expected to be less than one million barrels per day (bpd) would represent an increase of less than 1% in global oil consumption and the lowest level of growth since 2014 and before that 2012.<\/p>\n\n\n\n

Back then, declining demand was due to elevated oil prices averaging above $100 per barrel in real terms. Now prices trend in the $50-$60 range for WTI, confirming that even with low oil prices, demand is nowhere to be seen.<\/p>\n\n\n\n

B.P.’s global oil consumption is the most bearish among other predictions from the International Energy Agency (+1.1 million bpd), OPEC (+1.1 million) and the U.S. Energy Information Administration (+1.0 million).<\/p>\n\n\n\n

Waning demand for oil across the world is the result of a global manufacturing recession festering underneath the surface<\/a>. <\/strong>The global synchronized decline is structural and started in 4Q17, several months later, the trade war between the U.S. and China erupted in 1Q18.<\/p>\n\n\n\n

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Source: Bloomberg<\/em><\/figcaption><\/figure>\n\n\n\n

Since\u00a0global GDP drives oil consumption.<\/strong>\u00a0Kemp shows that the World Bank (“Global economic prospects,”<\/em>\u00a0June 2019) data is indicating world growth will be in a slump this year. Estimates show global GDP has been revised lower from 3.0% in 2018 to just 2.6% in 2019.<\/p>\n\n\n\n

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Global GDP growth is at the same level as 2014 and before that 2012. So it makes sense why oil consumption has dropped to a five year low, it’s because the global economy has lost tremendous amounts of momentum, now reversing into a vicious downturn.<\/strong><\/p>\n\n\n\n

 \u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

Sluggish Oil Demand To Keep A Lid On Oil Prices Amid Global Recession Fears\u00a0 John Kemp, senior market analyst of commodities at Reuters, cites a new report via B.P.’s finance chief that indicates global oil consumption will be less than 1 million barrels per day this year, an ominous sign that the global economy is quickly deteriorating. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[1039,1264,4318],"class_list":["post-48356","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-oil-consumption","tag-recession","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48356","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=48356"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48356\/revisions"}],"predecessor-version":[{"id":48357,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48356\/revisions\/48357"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48356"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48356"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48356"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}