The IEA said that the run up in oil prices in the last few months dampened oil demand growth, although the agency left its forecast for oil demand growth unchanged at 1.4 million barrels per day, after downgrading that estimate last month.
Subsidies and price regulation in a growing number of countries, intended to blunt the impact of rising fuel prices, could keep demand growth on track, despite oil prices trading significantly higher than, say, a year ago.
Looking ahead to 2019, the IEA thinks that oil demand growth will expand by yet another 1.4 million barrels a day, this time with the help of the petrochemical sector.
Several of projects are coming online earlier than expected, adding more consumption to the mix. The demand estimate is a rather strong one, given substantial expansion in demand over the past few years.
Overnight, the gold price was fixed at $1304.72.
The WTI crude oil price was up overnight at $66.98 per barrel.
In softer commodities, cocoa increased $70 per tonne or 2.94% to $2450/t yesterday from the $2380 in the previous trading session, tradingeconomics.com reported. Historically, cocoa reached an all-time high of $4361.58/t in July of 1977 and a record low of $211/t in July of 1965.
Coffee decreased 0.65c per pound or 0.56% to 115.70c/lb yesterday from 116.35c/lb in the previous trading session, tradingeconomics.com reported. Historically, coffee reached an all-time high of 339.86c/lb in April of 1977 and a record low of 42.50c/lb in October of 2001.