IEA warns global oil demand may suffer as crude nears $80/barrel

LONDON: Global demand for oil is likely to moderate this year, as the price of crude nears $80 a barrel and many key importing nations no longer offer consumers generous fuel subsidies, the International Energy Agency said.
The IEA cut its forecast for global demand growth to 1.4 mbpd for 2018, from a previous estimate of 1.5 mbpd.
Oil has risen 51 per cent in the last year, driven by coordinated supply cuts and, this month, by concern over Iranian supply after the US said it would reimpose sanctions on Tehran. “It would be extraordinary if such a large jump did not affect demand growth, especially as end-user subsidies have been reduced or cut in several emerging economies in recent years,” the IEA said. — Reuters