US-China trade war weakening demand for oil

The International Energy Agency says the US-China trade war and a decline in world economic growth are weakening the demand for oil.

The Paris-based agency, which advises many developed countries on energy policies, cut its forecast for oil demand growth this year and next by 0.1 million barrels a day, to 1.1 million barrels and 1.3 million barrels a day, respectively.

The trade war is worsening a downturn in global growth, dragging down demand for energy sources like oil.

The price of crude has fallen, with the international benchmark hitting its lowest since January, below $57 a barrel.

The IEA said tensions in the Persian Gulf, where some oil tankers have been attacked, have heightened concerns.

But the biggest impact on demand comes from trade disputes and lower growth.