Why do you think the global oil demand is stagnating?
High prices, at least until late summer. There is a lag, I believe. As there will be a lag in the consumption increase. Once folks get a bit used to it, they’ll drive plenty. Always have.
But this oil price drop is primarily, but not exclusively, a supply issue. The near-doubling of US production in the past several years is to “blame.”
“Why do you think the global oil demand is stagnating?”
Because the IEA has been saying so, for months.
“IEA estimates that global oil demand will be weaker in 2015 than previously anticipated and supply from countries not part of the Organisation of the Petroleum Exporting Countries (OPEC) will be bigger.
The agency said consumption will grow by 230,000 barrels a day less than it estimated last month, while output from non-OPEC countries will grow at a quicker pace than IEA predicted in November.
It comes after OPEC cut is forecast for global oil demand in 2015.”
http://www.ifamagazine.com/news/europe-close-stocks-slide-as-oil-prices-drop-310508