Paris, France — Global oil demand will be lower than previously forecast this year as rising trade tensions weigh on the economic outlook, the International Energy Agency said Tuesday.
While US imports of oil, gas and refined products have been exempted from President Donald Trump’s tariffs, his other levies have raised fears of inflation and recession, pushing crude prices to four-year lows, the IEA said.
“After a period of relative calm, global oil markets were roiled by a barrage of trade tariff announcements in early April,” the Paris-based agency said in a monthly report.
It lowered its forecast for growth in oil demand by 300,000 barrels per day (bpd) — down from just over one million bpd in its March report to 730,000.
Trump imposed global tariffs of 10 percent this month but paused higher levies on scores of countries for 90 days.
“With arduous trade negotiations expected to take place during the coming 90-day reprieve on tariffs and possibly beyond, oil markets are in for a bumpy ride and considerable uncertainties hang over our forecasts for this year and next,” the IEA said.
The Saudi-led OPEC oil cartel also lowered its annual forecast on Monday, a slight revision to 1.3 million bpd.
