IEA: The Decline In Oil Prices Shows That Demand Has Decreased

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The International Energy Agency (IAA) stated that the decline in oil prices after reaching almost $100 per barrel indicates that demand has decreased. In the “Oil Market Report” of IEA for September, it was stated that supply fears were replaced by signs of deterioration in macroeconomic indicators and destruction of demand in the USA, where fuel supply has fallen to the lowest levels of the last twenty years. “Demand erosion hit emerging markets even harder as exchange rate effects and the removal of subsidies increased fuel prices,” the report said.

Expressions were used. In its report, IEA noted that although there is no direct impact on physical supply, the markets will continue to be on edge and they are ready to take action if necessary as an agency to ensure adequate oil supply to the markets. The report stated that, with the influence of China, world fuel consumption is on its way to increase by 2.3 million barrels per day this year to a record level of 101.9 million barrels per day, and that crude oil stocks fell by 102 million barrels in August, the highest since 2017. It was announced that it fell to its lowest level and stocks are expected to decrease sharply in this quarter.

Global Oil Supply Increased By 270 Thousand Barrels Per Day In September

According to the report, crude oil production increased by 240 thousand barrels per day in September compared to the previous month, reaching 28 million 210 thousand barrels. During this period, non-conventional OPEC production other than crude oil was recorded as 5 million 580 thousand barrels per day. Thus, OPEC’s total oil production amounted to approximately 33 million 790 thousand barrels per day last month.

Noting that Brent oil prices, the international crude oil indicator, rose to a 10-month high of over $97 per barrel at the end of September due to Saudi Arabia and Russia cutting supply and global fuel consumption remaining close to record levels, IEA stated that the increase in oil prices and interest rates will affect economic growth and economic growth. He stated that it has decreased by 12 percent since then due to concerns that it may slow down demand growth. On the other hand, crude oil prices started to rise on Monday following Hamas’ attack on Israel last weekend. Brent oil prices decreased again on the 4th business day of the week and are traded around $86 per barrel.

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