Of course, also causing trading trepidation are the growing tensions between Iran and the West: Tehran on Friday said Britain was playing a "dangerous game" after last week's seizure of an Iranian tanker on suspicion it was breaking European sanctions. But supply is now well in excess of demand, said the Paris-based institution that provides advice to oil-consuming nations.
The French-based agency said oil supplies for the first half of 2019 surpassed demand by almost a million barrels a day.
The report added that the second half of 2019 expecting to see "seasonally strong demand" based on "the recent draws in USA crude oil stocks".
According to Reuters news reports, the gauges seem to anticipate the requirement for maker club OPEC and its partners to diminish production in order to maintain the market in spite of broadening their current settlement, estimating a fall sought after for OPEC unrefined to just 28 million barrels for each day (bpd) in mid-2020.
Neil Atkinson, head of the oil industry and markets division at the IEA, said, "So, as far as the issue of re-balancing is concerned, as we say in the lead article in today's report, re-balancing is still some way off".
The IEA said that it was sticking for the time being to its current forecasts for economic growth, but "there are indications of deteriorating trade and manufacturing activity". "European demand is sluggish; growth in India vanished in April and May due to a slowdown in [liquefied petroleum gas] deliveries and weakness in the aviation sector; and in the US demand for both gasoline and diesel in the first half of 2019 is lower year-on-year".
"Factors that could influence the pace of oil demand growth in 2020 include macroeconomic developments in major consuming countries, the displacements of heavy distillates with natural gas and other fuels, subsidy programmes and plans for their removal, the effect of commissioning/delays/closures of mega projects in the downstream and fuel efficiency programmes, especially in the transportation sector", the report said.