Industry and Energy

Home page

Industry and Energy

IEA cuts global oil demand forecasts

11 August 2012 10:28 (UTC +04:00)

Baku â€“ APA-Economics. Faltering economic growth will undercut global oil demand this year and next, the International Energy Agency said Friday, citing slowdowns in China and the United States in particular, AFP reported.

"Sluggish economic growth could restrict annual oil demand growth to 0.9 million barrels per day in 2012 and 0.8 mbpd in 2013, with demand averaging 89.6 mbpd and 90.5 mbpd," down from last month’s estimates of 89.9 mbpd and 90.9 mbpd, respectively, the IEA said in its latest Oil Market Report.

The IEA highlighted slower demand in the United States and China, which together account for a third of the global market, while technical changes in its calculations also cut its 2012 forecast by 0.25 mbpd.

Global oil supply in July rose 0.3 mbpd from June to 90.7 mbpd, representing an annual gain of 2.6 mbpd, the IEA said.

OPEC July supply was put at 31.39 mbpd, down marginally as lower output in Iran, Libya and Angola offset increased production in Iraq, Qatar and the United Arab Emirates, it added.

On Thursday, the Organization of Petroleum Exporting Countries increased its global demand forecast marginally, to 88.72 mbpd from 88.68 mbpd in July.

Demand for 2013 was put at 89.52 mbpd, up from 89.50 mbpd last month, representing an increase of 0.81 mbpd from 2012, it said.