EIA Projects Lower Oil Demand Growth as Prices Plunge 4%

EIA Projects Lower Oil Demand Growth as Prices Plunge 4% | OilPrice.com

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Breaking News:

ByCharles Kennedy– Apr 10, 2025, 1:30 PM CDT

The U.S. Energy Information Administration (EIA) on Thursday revised its global oil demand growth projections downward, citing the impact of escalating trade tensions and increased tariffs, as markets resumed their downward trajectory that saw a brief pause on Wednesday following Washington’s announcement of a postponement for everyone except China.

The EIA now anticipates a growth of 900,000 barrels per day (bpd) for the current year, a decrease from the previously forecasted 1.2 million bpd. For 2026, the projection is adjusted to 1.1 million bpd, slightly down from the earlier estimate of 1.2 million bpd.

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This adjustment follows U.S. President Donald Trump’s decision to implement a 90-day postponement of reciprocal tariffs, excluding China, which afforded the markets a brief reprieve yesterday. At the same time, Trump raised tariffs on Chinese imports to 125%, intensifying the key aspect of this conflict. In retaliation, China imposed an 84% tariff on U.S. goods. Analysts remained fearful that this tariff warfare will lead to global recession and crimp demand for oil.

Oil responded in kind on Thursday afternoon, plummeting by over 4% and nearly 5% in the second part of the day before calming slightly.

At 2:11 p.m. ET on Thursday, Brent crude was trading down 3.33% to $63.30 per barrel, while U.S. West Texas Intermediate (WTI) was trading down 3.64% to $60.08 per barrel. An earlier OPEC+ decision to increase output and a 2.6-million barrel increase in the U.S. crude stockpile reported on Wednesday have also contributed to oversupply concerns.

Wall Street was back in panic mode by Thursday afternoon, with the selloff resuming.

Wall Street is now claiming that intervention by billionaire hedge fund chief Bill Ackman was responsible for Trump’s change of heart on tariffs and the 90-day postponement.

By Charles Kennedy for Oilprice.com

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