IEA cuts demand estimates on higher oil prices

The International Energy Agency (IEA) has cut its estimate for global oil-demand growth for both 2018 and 2019 by about 110,000 barrels a day to 1.3 million and 1.4 million barrels a day respectively, due to the growing pressures to global economic growth.

The Organization of Petroleum Exporting Countries (OPEC) reduced its forecast on global demand on Thursday, as oil producers are pressured to make up for Iran’s losses.

“For many developing countries, higher international prices coincide with currencies depreciating against the U.S. dollar, so the threat of economic damage is more acute,” the Paris-based IEA said in its monthly report on Friday.

As the oil market reached a record production of 100 million barrels a day, prices are rising steadily. Brent crude oil is now just above $80 per barrel.