20MAY2019 - NEWS - Oil trapped between Iran and trade wars: Bank of America Merill Lynch

Opec+ production has fallen sharply, with Venezuela and Iran alone contributing to about 840,000 barrels per day (b/d) of the 2.3 million b/d group supply drop between November 2018 and April 2019, said the Bank of America Merrill Lynch (BofAML) in a new report.

In contrast, global oil demand growth has decelerated sharply in recent months, averaging just 680,000 b/d in the past two quarters compared to trend demand growth of 1.46 million b/d in the past 5 years, said BofAML’s latest Global Energy Weekly.

Weakness in manufacturing may drag down services if trade wars eventually hurt consumer sentiment. In a global downturn, Brent could slip to $50 per barrel (/bbl). On the other hand, under a US-China deal scenario, business confidence may return with a vengeance, resulting in a weaker USD and stronger global growth. If a cyclical global demand upturn coincides with an IMO2020 boost, Brent crude oil prices could spike to $90/bbl.

Published by Editor - www.Livebunkers.com at 20-May-2019 04:06:55 [UTC] , contact editor at editor@livebunkers.com