The International Energy Agency
trimmed demand forecasts for OPEC’s crude in the second half of
the year amid signs of slowing growth in China as output from
the producer group rose to a seven-month high.
The Organization of Petroleum Exporting Countries will need
to provide an average 29.8 million barrels a day in the second
half, the IEA said today in its monthly market report, lowering
its assessment from the previous report by 200,000. That would
require OPEC to cut output by 1.1 million barrels from the 30.9
million it pumped in May, according to the report. The agency
kept its global oil demand estimates for this year unchanged.
“While Europe’s economic woes are taking a toll on demand,
there are mounting signs that China’s oil use, like its economy,
may have shifted to a lower gear,” the Paris-based adviser to
28 oil-consuming nations said.
On the oil chart, notice that the 96-98 prices level is still providing resistance.