Oil demand continues to soften, which could result in a supply surplus in the second half of this year.
In its latest Short-Term Energy Outlook, the EIA downgraded its forecast for global oil demand growth to just 1.1 million barrels per day (mb/d) this year, down from the 1.2 mb/d the agency forecasted last month and from 1.4 mb/d in May.
What a difference a month makes. The souring economic picture now means that inventories could actually increase by 0.1 mb/d, the agency said in its latest report. In other words, even with the OPEC+ cuts extended, the oil market could remain in a state of surplus throughout this year and next….CLICK for complete article