IEA says oil market ‘walking a tightrope’ as rising prices drive down demand

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Higher prices and worsening economic conditions are already taking a toll on demand

A crude oil tanker at Qingdao Port, Shandong province, China. Picture: REUTERS/JASON LEE

“Rarely has the outlook for oil markets been more uncertain. A worsening macroeconomic outlook and fears of recession are weighing on market sentiment, while there are ongoing risks on the supply side,” the Paris-based agency said. The estimate fell far short of producer group Opec’s estimate for the year of 3.4-million bpd growth on Tuesday. It was more in line with the US Energy Information Administration’s estimate of 2.2-million bpd growth.

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