The Daily Chase: Awaiting U.S. Fed decision; IEA forecasts slowdown in oil growth
BNN Bloomberg
It’s decision day for U.S. Federal Reserve Chair Jay Powell & Co., where the Fed is widely expected to hit the pause button on its aggressive rate hiking cycle after ten straight increases.
IEA WARNS OF SLOWING OIL DEMAND GROWTH
The International Energy Agency is warning global oil demand growth will slow precipitously as we near a peak in consumption. The IEA says 2024 demand is expected to grow at half the rate seen in the prior two years, before essentially hitting stall speed in 2028 (growth of 400,000 barrels per day by then.) The IEA says gasoline use will go into decline from this year onwards, with demand for oil as a transport fuel writ large following suit in three years, with the remainder of demand growth being confined to petrochemicals. There’s also a distinct bifurcation in the near and mid-term outlooks. In the immediate future, the IEA sees the potential for world oil markets to tighten “significantly” due to a rebound in Chinese consumption and lower production out of OPEC+ before the aforementioned slowdown kicks in.
CANACCORD TAKE-PRIVATE PLAN ABANDONED
