Oil demand growth concerns threaten to overshadow supply cuts

THE oil sector has witnessed a series of developments in early 2019 that have clouded demand prospects and have sent out a signal to the market that the recovery in prices could be at a pace slower than expected earlier.

Fears are rising over slowing economic growth in Europe, the US and China. That may potentially overshadow any potential disruption to supplies because of two key factors – the impact that Washington’s decision to impose sanctions on Venezuelan oil might have on trade flows, and secondly, if the US turns down requests to extend waivers on Iranian oil.