Oil Prices Rise Even As IEA Reports Demand Growth At Lowest Since Financial Crisis

Oil prices rose for a second day as trade fears eased even as the International Energy Agency warned economic damage from the ongoing U.S-China trade war has cut oil demand growth rose to the slowest pace since the financial crisis in the first half of the year as it again lowered demand-growth expectations.

West Texas crude for September delivery was last seen up US$0.60 to US$53.14 per barrel while October Brent crude was up US$0.69 to US$58.07 per barrel.

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In its monthly Oil Market Report, the International Energy Agency said first-half oil demand rose 0.6 million barrels per day, the lowest since 2008, with 0.5 million barrels of that growth coming from China. It lowered its 2020 demand-growth forecast by 0.1 million bpd to 1.3 million barrels per day.

However the agency said OPEC production cuts have helped balance a market that has otherwise been oversupplied, with Saudi Arabia keeping output 0.7 million bpd below its quarter. However those cuts are offset by strong non-OPEC production growth, leading the agency to forecast a “well supplied” market in 2020.