Is Oil Demand Growth Overrated?

Organic demand or population growth alone (absent surging debt) among the consumer base that consumes in excess of 90% of global oil, is collapsing. I have detailed this previously; The Most Important Economic Charts…Aren’t Economic Charts , Trade Wars Just Beginning…The War Is a Fight Over an Indefinitely Shrinking Pie , and Global Growth in Energy Consumption (& Economic Growth) is All About China…Nothing but China ).

This article focuses solely on the demand side of oil (but the situation is similar for most commodities or assets for that matter) and details the decelerating number of potential consumers versus forecasts of continued trend growth in consumption.

However, I make no predictions regarding the oil price outlook as there are far too many other factors regarding; supply, currencies, geo-politics, cap-ex for exploration, depletion rates of existing fields, and far more. My sole focus and point is that growth in demand is fast waning but that price is an amalgam of demand with many other factors that may result in a rising price despite declining and soon to be falling organic demand…

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Posted in: Daily News

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