With Donald Trump hemming and hawing about providing a finite date for when the much-promised trade deal with China will be signed, oil prices took a hit for the worse on Wednesday, 13th November. Brent Crude dipped by around 0.3 per cent or about 18 cents and was trading at around $62 per barrel.
West Texas Intermediate crude’s value slumped by around 0.2 per cent or around 12 cents, with its trade value pegged at about $57. According to an International Energy Agency (IEA) report, doubts about the sustainability of the long-term future of crude demands also contributed to the slump.
As of now, according to the IEA study, while up to 2025, demand for crude would continue to increase by around one million bpd (barrels per day), after 2025, there would be a drastic cut down in these demands. The IEA, in its report, said that the reason for the slump in the demand for crude would be because of two factors.
One, an increase in the efficiency of fuel; and the other, on account of an increase in the number of e-vehicles plying on the road. The IEA presented its report at the World Energy Outlook. Speaking at the event, the agency’s executive director said, “…The effects have been striking, with U.S. shale now acting as a strong counterweight to efforts to manage oil markets”.