IMF Cuts Global Growth Forecast Again
Prices are flat this morning as the specter of slower economic growth is weighed against potential OPEC cuts. WTI Crude is trading at $52.87, a gain of 6 cents.
Fuel is mixed this morning. Diesel is trading at $1.9196, a gain of 1 cent. Gasoline is trading at $1.6081, a loss of 0.6 cents.
On Tuesday, the IMF published its fifth straight cut to its 2019 global growth forecast in its World Economic Outlook. Growth this year is now forecast to be 3.0%, down from previous the July forecast of 3.2%; last year, 2019 growth was expected to be 3.9%. The cut places global growth at its slowest pace since the 2008-2009 financial crisis. Growth is expected to pick up next year with 3.4% growth in 2020. Both now and in the future, trade concerns are the dominant concern for the IMF, with the US-China trade war featuring prominently in their analysis. Crude was down on the news yesterday but is relatively flat in early trading this morning.
In OPEC news, OPEC Secretary-General Mohammad Barkindo stated that OPEC+ may plan for greater cuts in crude production at their December meeting. In addition, the EIA believes that OPEC will face challenges next year, as fuel-demand growth could slow due to a weakening economy and as rival supply growth increases.
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