The concerns over the global demand for crude oil are getting back to the market again. The current trading week has been a week of discounts. Earlier today, Brent oil saw its price drop down to 61 dollars per barrel. The WTI price dropped all the way down to 56 dollars per barrel. The supply side has got an upper hand.
Saudi Arabia has almost completely restored its oil production after the drone attack on September 14th. So, it took the Saudis around 2 weeks to get the job done, which is a much better result than expected. With that being said, the concerns over the oil supplies from the region have decreased. However, the global oil demand has now become number-one concern
It is reported that the oil suppiers have backed the head of the International Energy Agency (IEA), who said that the agency may decrease the global oil demand forecast for 2019-2020 due to a weaker global economy. The key problem here is the world's biggest consumer of crude oil, which is China. The thing is that the Chinese economy is seeing the lowest annual growth in two decades.
Still, there was a positive sign for crude oil in his speech. The head of the IEA thinks that the downside potential is limited because oil prices themselves influence the demand for crude oil since everyone wants to buy oil at a discount. With that being said, the discounted oil prices will inevitably restore the global demand for crude oil.
