The International Energy Agency (IEA) cut forecast for oil consumption in 2019 due to flattening growth of the global economy and persisting risks from trade standoff between US and China, said Fatih Birol, the head of organization.

The agency expects consumption to fall to 1.1 million barrels per day and may deliver even gloomier revision of the projections if the global economy, and especially China, shows further weakening, Birol said.

The IEA was much more upbeat last year predicting an increase in demand by 1.5 million b/d in 2019 but updated projections contained much more pessimistic figures weighed largely by global trade risks.

«China is experiencing the slowest economic growth for the past three decades, as well as some developed economies ... if the global economy figures are even worse than we expect, then in the coming months we can even revise our figures again,” said Birol in Reuters interview.

According to Birol, the demand for oil were adversely affected by the trade war between United States and China at a time when the markets have been drowning in oil due rising shale oil production in the United States.

It is expected that in 2019, US oil production will increase by 1.8 million barrels per day - less than 2.2 million barrels per day in 2018, Birol said, but “these volumes will go to the market, where demand growth is decreasing “.

According to him, the IEA is concerned about rising tensions in the Middle East, especially around the Strait of Hormuz, an extremely important shipping route connecting the Gulf oil producers with markets in Asia, Europe, North America and other countries.