Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • Dick Young’s Safe America
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Retirement Compounders®
  • Free Email Signup

Oil Demand Feeling Pressure from High Prices

July 15, 2022 By Jeremy Jones, CFA

By think4photop @ Shutterstock.com

Oil demand in developed countries is under pressure from high prices, reports the IEA. David Sheppard reports for the Financial Times that IEA analysts believe that “Soaring fuel costs and a deteriorating economic environment are slowly starting to moderate oil demand growth in the OECD.” He writes:

Record fuel prices are hitting oil demand in developed countries harder than anticipated, the International Energy Agency warned on Wednesday, in the latest sign of inflationary pressures forcing consumers to cut back.

Paris-based IEA, which is primarily funded by OECD members, said that growth in oil demand was slowing as the global economy faltered, but cautioned that the oil market was “walking a tightrope” of uncertainty given threats to supply in Russia.

“Soaring fuel costs and a deteriorating economic environment are slowly starting to moderate oil demand growth in the OECD,” said the IEA. “Oil demand in the OECD contracted in April, with the Americas, Europe and Asia all posting larger than normal seasonal declines. Road fuels were impacted the most, suggesting that record prices have begun to afflict demand.”

The IEA’s latest assessment comes after oil prices pulled back in recent weeks, declining from $120 a barrel to near $100 a barrel. But the industry remains deeply divided over whether the price slide will continue.

Opec, the cartel of oil producers, presented a forecast earlier this week that implied demand for its oil would far outstrip its production capacity next year, while the outlook for Russian supplies remains highly uncertain, with western sanctions over Moscow’s invasion of Ukraine set to intensify later this year.

Many traders are looking for signs that oil demand is cooling, however, with the picture complicated by the rebound in activity after the peak of Covid-19 restrictions. While developed economies may be slowing, areas including aviation are picking up, making it even more challenging than usual to gauge the strength of oil consumption.

The IEA said oil demand fell in April by 1.6mn barrels a day in the OECD — a decline that was roughly twice as large as the typical seasonal pattern.

But on a global level, that trend was offset to an extent by rising demand in Asia.

Read more here.

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • What Is Going to Happen to Oil Prices?
  • Oil Demand Recovery as the World Reopens
  • Oil Prices Soar on Russian Attack
  • Author
  • Recent Posts
Jeremy Jones, CFA
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. CNBC has ranked Richard C. Young & Co., Ltd. as one of the Top 100 Financial Advisors in the nation (2019-2022) Disclosure. Jeremy is also a contributing editor of youngresearch.com.
Latest posts by Jeremy Jones, CFA (see all)
  • Suddenly, Holding Cash Looks Good Again to Many - January 26, 2023
  • Is Passive Investing Already Passé? - January 25, 2023
  • Can Banks Compete with Apple Pay and PayPal? - January 24, 2023

Search Young Research

Most Popular

  • Don't Let Your Lazy Cash Eat all Your Food
  • Markets Are Calling the Fed's Bluff
  • Welcome to Hotel California, Where You Can Never Leave
  • Anti-Carbon Crusaders in Davos Talk ESG and OPM
  • America's Super States and Stocks that Respect YOU
  • Is Passive Investing Already Passé?
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • Can Banks Compete with Apple Pay and PayPal?
  • Your Survival Guy’s Guide to Your Lazy Cash
  • What You’re Telling Me Matters

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Could this Be the Vanguard GNMA Winning Edge?

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

RSS The Latest at Richardcyoung.com

  • Don’t Believe ’em. They’re Coming for Your Gas Stove
  • NH Republicans Favor DeSantis Over Trump By a Big Margin
  • CATO: Global Freedom Is in Sharp Decline
  • The Telling Depth of Media Propaganda and Censorship
  • MEDIA BLACKOUT: No One Will Cover Pharma Exec’s Virus Confession
  • TIME FOR A GONDOLA? Little Cottonwood Canyon Jammed with Traffic
  • Biden Administration Destroying Retiree Fiduciary Protections
  • Will Western Tanks Be a Game Changer in Ukraine?
  • The Power of Words
  • 4 Life Changing Words for Your Survival Guy: “You Should Try This”

RSS The Latest at Yoursurvivalguy.com

  • CATO: Global Freedom Is in Sharp Decline
  • TIME FOR A GONDOLA? Little Cottonwood Canyon Jammed with Traffic
  • Biden Administration Destroying Retiree Fiduciary Protections
  • 4 Life Changing Words for Your Survival Guy: “You Should Try This”
  • Anti-Carbon Crusaders in Davos Talk ESG and OPM
  • Welcome to Hotel California, Where You Can Never Leave
  • What You’re Telling Me Matters
  • The Rich Seek More from Bank Accounts
  • California’s Wealth Tax Will Drive Out Remaining Rich Residents
  • Political Establishment Irate over Conservative Challenges to ESG

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2023 | Terms & Conditions

 

Loading Comments...
 

    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.