IEA Forecasts Slowdown In Oil Demand, Contrasts Positive Outlook By OPEC+
Portfolio Pulse from Benzinga Neuro
The International Energy Agency (IEA) forecasts a slowdown in oil demand through 2024, contrasting with OPEC+'s more optimistic outlook. The IEA cites a 'decidedly bearish' market sentiment and predicts a reduction in oil consumption growth next year due to weaker global economic performance and diminishing Covid-19 impacts. This comes as the COP28 climate summit pushes for a transition from fossil fuels. The United States Oil Fund (USO) saw a pre-market drop of 0.2% following a 3.8% loss, reflecting the pressure on oil prices.
December 14, 2023 | 12:12 pm
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The United States Oil Fund (USO) experienced a pre-market drop of 0.2% following a 3.8% loss, likely due to the IEA's bearish oil demand forecast and the recent COP28 agreement on transitioning away from fossil fuels.
The IEA's forecast of a slowdown in oil demand suggests a bearish outlook for the oil market, which can negatively impact the performance of oil-related ETFs like USO. The recent COP28 agreement further pressures fossil fuel investments, contributing to the potential decline in USO's price in the short term.
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