South Africa: Global Oil Demand Growth Slows in Double-Edged Sword for SA As Trade War Heats Up

analysis

Last week, the International Energy Agency (IEA) said growth in the demand for oil had braked to its slowest pace since the global financial crisis of 2008. US President Donald Trump's reckless pursuit of a trade war with China is partly to blame for this reversal in oil's bull run, which will also set back US economic growth. For South Africa's vulnerable economy, this is a double-edged sword.

South African consumers should perhaps be thankful to the current occupant of the White House. Donald Trump has triggered a trade war with China and in the process mounting concerns about global economic growth have brought oil prices down. This should translate into lower South African pump prices in coming months, if the rand manages to hold its own.

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