The trade war between the United States and China has weakened global oil demand

- Aug 12, 2019-

The international Energy Agency's monthly oil market report Friday said The trade war between The United States and China and slowing global economic growth have dented demand for oil.So far this year, global oil demand is growing at its slowest pace since the 2008 financial crisis.

The IEA cut its forecast for oil demand growth this year and next by 100,000 b/d, from 1.1 million b/d this year and 1.3 million b/d next year.

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In its oil market report, the IEA said global oil demand fell 160,000 barrels a day in May from a year earlier, the second month of 2019.Global oil demand rose 520,000 barrels a day in the first five months of this year, the slowest pace since 2008.

Concerns about the health of the global economy and the increasingly uncertain u.s.-china trade relationship will put further pressure on global oil demand in 2019, the report said.

The trade war between the United States and China has hurt energy demand, including oil.Crude oil prices fell and the benchmark oil price fell to its lowest level since January, below $57 a barrel.

The IEA report says tensions in the Persian gulf are of high concern, but the biggest impact on oil demand continues to come from the u.s.-china trade dispute and slowing economic growth.

Iran recently detained Iraqi oil tankers in the Persian gulf;Last month a panamanian-flagged oil tanker was seized by Iran's revolutionary guards.Both were accused of smuggling fuel.In response, the United States in July proposed an international convoy alliance to ensure the safety and freedom of navigation of merchant ships passing through the Persian gulf.The us is currently lobbying countries to join the convoy alliance.