Global oil demand remains on course to be stronger this year than in 2018 as a boost from lower fuel prices counters slowing economic activity, according to the International Energy Agency.
The International Energy Agency cut forecasts for global oil demand growth in 2018 as the highest prices in three years put a brake on consumption.
OPEC's production output dropped last month from a record high as producers attempt to tackle the global oil glut.
Royal Dutch Shell Plc, the world’s second-biggest oil company by market value, thinks demand for oil could peak in as little as five years.
Iran's Oil minister has claimed the market is oversupplied but said the balance between demand and supply will be restored.
ExxonMobil said oil demand will grow by 20% to 112million barrels a day in 2040. The company made the analysis as it released its annual outlook earlier today.
OPEC said demand for its crude will slide to 2020, though less steeply than previously expected, as rival supplies continue to grow. The organization will need to pump 30.7 million barrels a day by the end of the decade, OPEC said Wednesday in its annual World Oil Outlook. That’s 1.7 million barrels more than projected a year ago, and 1 million less than the group pumped in November. The forecast underlines the struggle faced by the Organization of Petroleum Exporting Countries as it seeks to defend market share against a surge in output from rivals such as the U.S. and Russia. While OPEC is slowly taming the expansion of competitors, the collapse in oil prices means the financial costs of its strategy are immense. Brent crude futures touched an 11-year low of $36.04 a barrel on Dec. 21.
Demand for protection against oil falling below $40 in the next month reached a record as a global supply glut pushed prices to the lowest in more than 5 1/2 years. Open interest, or the amount of contracts outstanding, for March $40 puts on West Texas Intermediate crude climbed to 22,575. The price of the options reached 79 cents a barrel today, up from 1 cent in November. Investors should buy less-expensive March or April $35 puts for protection, BNP Paribas SA said.