Oil Demand Set to Stop Growing in Q4 as Slowdown Bites, IEA Says
Growth in global oil demand is set to grind to a halt in...
Growth in global oil demand is set to grind to a halt in the fourth quarter of this yearas an economic slowdown deepens, the International Energy Agency (IEA) said on Sept. 14, but said it would resume strongly in 2023.
The outlook preserves a relatively bullish view for robust growth next year despite economic headwinds, built on the expectation that China's COVID lockdowns will ease while growth in air travel will boost jet fuel demand.
"Global oil demand remains under pressure from the faltering Chinese economy and an ongoing slowdown in OECD economies," the Paris-based energy watchdog said in its monthly oil report.
The IEA cut its forecast for demand growth this year by 110,000 bbl/d to 2 MMbbl/d while keeping its 2023 growth forecast of 2.1 MMbbl/d.
U.S. stocks finish slightly higher following Tuesday's deep selloff
U.S. stocks ended slightly higher Wednesday, bouncing from Tuesday's...
U.S. stocks ended slightly higher Wednesday, bouncing from Tuesday's selloff as investors parsed fresh data on wholesale prices. The Dow Jones Industrial Average DJIA, +0.10% edged up 0.1%, while the S&P 500 SPX, +0.34% gained 0.3% and the Nasdaq Composite COMP, 0.74% rose 0.7%, according to preliminary FactSet data. The producer price index showed that the cost of U.S. wholesale goods and services fell 0.1% in August largely because of cheaper gasoline, with the rise over the past year easing to 8.7% from 9.8% in July, according to a report Wednesday from the U.S. Bureau of Labor Statistics. But core PPI data, which excludes food and energy from wholesale prices, rose 0.2% in August, the report shows.
The energy sector is off to a mixed-to-higher start, supported by strength in natural gas futures and the broader markets, despite weakness in the crude complex. U.S stocks are set to open mostly higher a day after a brutal sell-off on Wall St, as the market awaits to digest more inflation data.
WTI and Brent crude are moving higher during a choppy morning of tradingas investors remain concerned the Federal Reserve will continue to aggressively raise interest rates which will put a dent in oil demand. The IEA in its September MOMR today expects global oil demand growth to come to a halt in 4Q22 and with supply outpacing demand into 2Q23, there should be a "much needed" build in stocks. Growth in global oil demand continues to decelerate, weighed down by renewed Chinese lockdowns and an ongoing slowdown in the OECD. Additionally, the Biden administration is looking at refilling the SPR at $80/barrel oil as Secretary of State Blinken stated a new nuclear agreement with Iran in the near term was unlikely.
Natural gas futures are up as record levels of output continue to lend support and on forecast for higher demand in the next two weeks than previously expected.
Mortgage rates hit 6% for first time since 2008 with applications at 23-year low
The numbers: A surge in mortgage rates to 6% is giving home shoppers chills, pushing...
The numbers: A surge in mortgage rates to 6% is giving home shoppers chills, pushing them to wait to refinance or buy a home.
With rates doubling from where they were a year ago, demand from buyers continues to weaken, as reflected in the Market Composite Index, a measure of mortgage application volume.
The index is now at its lowest level since December 1999, the Mortgage Bankers Association (MBA) said on Wednesday.
The market index fell 1.2% to 255 in the week ending September 9. A year ago, the index stood at 707.9.
