OPEC

Oil demand growth hasn't been this slow since 2008

Photo: Yegor Aleyev/TASS via Getty Image

Global oil demand growth from January through May was the slowest for that period since 2008, and the "situation is becoming even more uncertain" as the U.S.-China trade fight heats up, the International Energy Agency said Friday.

Why it matters: Its closely-watched monthly report provides fresh evidence of how the global economic slowdown is weighing on oil markets. Prices are at their lowest levels since January, despite tensions in the Middle East that typically put upward pressure on the market. "Economic woes hold sway over geopolitics," it said.

OPEC, Russia set to extend oil production curbs

Russian President Vladimir Putin at the G-20 Summit in 2019. Photo: Mikhail Svetlov/Getty Images

The current agreement between OPEC and Russia to limit oil output is all but certain to be extended, a decision that alongside the easing of U.S.-China trade tensions could temper downward pressure on crude oil prices from the economic slowdown.

Driving the news: Russian President Vladimir Putin said at the G-20 meeting in Japan that the "OPEC+" agreement, which jointly curbs production by 1.2 million barrels per day, would be extended by 6-9 months, per Reuters and other outlets. He spoke Saturday after meeting with Saudi Crown Prince Mohammed bin Salman.