EIA Mulls Cut In China Oil Demand Forecast Amid Slowdow

With evidence of a sharp slowdown in Chinese oil demand growth mounting, the federal Energy Information Administration is considering lowering its forecast of the country’s oil consumption for the second time in three months.

The EIA, the statistics arm of the U.S. Department of Energy, which last month lowered its estimate of Chinese oil demand growth by 100,000 barrels a day to 700,000 barrels a day, is likely to cut it again by at least another 100,000 barrels a day. The change could come as early as next month when the agency releases its next monthly energy market outlook.

“If this is what it is, then we’ll need to adjust down a little here,” said EIA analyst Lowell Feld, referring to recent Chinese government data showing a sharp drop in the country’s oil imports. “I’d argue for a downward revision of 100,000 barrels a day.”
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