"Fitch" reduces its expectations for the growth of oil question this year

The “Fitch” credit rating agency adapted its view of the global oil and gas sector 2025 to “deteriorate” after being “neutral”, in light of a joint impact on US Customs duties, OPEC+production increases and the growth of countries outside the alliance. ‘Fitch’ expects global oil demand to grow by about 800 thousand barrels a day this year, which is a lower level of its previous expectations, which were slightly more than one million barrels a day. At the same time, the growth of supply means that the market will remain in a surplus on Wednesday according to the classification agency. “We have seen some decrease in the severity of customs duties; the uncertainty about the final level of these fees, and the impact of the actual applied fees, will, however, remain one of the most important factors in our macro economy expectations, leading to lower oil consumption increase than we expected before.” The reduction of the price expectations for 2025 and the agency reduced the assumption of the oil price from 2025 to $ 65 a barrel, from $ 70 he expected in April. She pointed out that the “OPEC+” decision to restore production faster than expected is one of the urgent factors on prices, but added that prices could rise if more sanctions were introduced on Russia, Iran or Venezuela, or as the conflict between Israel and Iran. However, “Fitch” suggested that changing her view of the sector had a limited impact on individual exporters credit ratings, strengthening their financial centers after “a period of high oil prices and a strong discipline in capital spending”, according to the agency.