Drop in global oil demand ‘nothing short of remarkable’

In an ominous sign for the global economy, the International Energy Agency (IEA) has said a sudden drop in oil demand for the second quarter of 2014 is “nothing short of remarkable.”

The second quarter saw demand slow to below 0.5 million barrels per day, the lowest level in two and a half years.

The IEA has “revised down sharply” demand forecasts for 2014 and 2015 to 0.9 million barrels per day and 1.2 million barrels per day respectively citing a weaker outlook in both Europe and China. The agency fears Eurozone economies “are getting perilously close to deflation.”

Last week the price for Brent crude fell though $100 USD a barrel, the first time in 16 months. Since the peak in June, prices are down over 14 percent. West Texas Intermediate is trading around $91 per barrel, the lowest level in 7 months and down 12 percent from the peak.

China’s Factory Output Slumps

According to China’s Nation Bureau of Statistics, growth in China’s factory output fell to 6.9 percent in August yoy, the weakest growth since the 2008 recession. Growth is expected to slow further with Xu Gao, chief economist at Everbright Securities in Beijing saying “The August data may point to a hard landing. The extent of the growth slowdown in the third quarter won’t be small,”

» International Energy Agency says sudden drop in the global demand for oil ‘nothing short of remarkable’ – The ABC, 12th September 2014.

» China’s factory growth slows to near six-year low – The Sydney Morning Herald, 13th September 2014.




5 Comments

  1. Interesting that no one has commented on this. This could well be the signal of a radical shift in the structure of the global economy.

    Crashing oil volumes, crashing iron ore prices, EU in rapid decline, USA scared to taper QE3, slowing world trade…..It’s all very negative…

    Then there are the on going wars…and wars about to start….Hell, this time they admit there is no exit plan in IRAQ! WTF….at least the last guy tried to say mission accomplished.

    This is all setting up for a monumental economic shake: Hold on..

    & WTF, is with gold and silver prices? It’s like the world doesn’t see any risk out there…..I guess with QE3, for many of the elite there is no risk…

  2. Yes, world is becoming highly volatile. It will be at least a decade before the Eurozone, the United States, Japan and developed nations in total can constructively escape from their high debt and low growth. Global growth will therefore remain stunted.

  3. There are a whole lot of things going on – the ‘big box’ selling model pioneered by Walmart is collapsing, the Baltic Exchange is dropping, inventory levels are rising, more and more countries are dropping the Dollar for trading, etc.

    Looks like deflation is rearing its head in the US. If that is the case there is no chance of the US inflating its way out of debt (never was but they had to live the delusion). All that will happen is it will start a wave of de-leveraging. This is probably what will happen in Australia.

    The US has become a ‘zombie’ economy that is addicted to zero interest rates. Any rise in interest rates will collapse the economy.

  4. Agenda 21 is called “the agenda for the 21 century” and that agenda refers to global fascism/communism. summary An end to national sovereignty. State planning and management of all land resources, ecosystems,deserts,forests,mountains,oceans and fresh water,agriculture,rural development,biotechnology and ensuring ‘equity'(equal slavery). The state to ‘define the role’ of business and financial resources. Abolition of private property(it’s not sustainable’). ‘Restructuring’ the family unit. Children raised by the state. People told what their job will be. Major restrictions on movement. Creation of ‘human settlement zones’. Mass resettlement as people are forced to vacate land where they currently live. Dumbing down education(achieved). Mass global depopulation in pursuit of all the above.

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