World oil demand growth to slow in 2009 - IEA

10 July 2008 10:47  [Source: ICIS news]

LONDON (ICIS news)--Global oil demand growth is expected to slow to 860,000 bbl/day in 2009 compared with a growth forecast of 890,000 bbl/day this year, the International Energy Agency (IEA) said its latest monthly oil report on Thursday.

World oil demand was estimated to reach 87.7m bbl/day next year compared with 86.9m bbl/day in 2008, slightly up from its prediction in June.

High oil prices have led to weaker demand from developed countries.

“The contraction in demand is expected to be particularly marked in North America (-380,000 bbl/day), given the weakness of the US economy and high oil prices,” the Paris-based IEA said in its July report.

“Demand in both Europe and the Pacific is seen falling by roughly 100,000 bbl/day each, as structural trends are amplified by high prices,” it added.

The IEA said that keeping OPEC output steady at June levels until the end of the year would imply an improvement in global stock levels.

"The additional 250,000 bbl/day pledged by Saudi Arabia from July provides insurance that the crude market should improve," it added.

"Moreover, as we head into early 2009, the bunching of new projects should lead to an increase in crude oil spare capacity."

Supply from non-OPEC countries was expected to grow to 640,000 bbl/day in 2009, taking production to 50.6m bbl/day.

OPEC crude supply for June was around 350,000 bbl/day higher than the previous month at 32.4m bbl/day, underpinned by a rise in exports from both Iran and Saudi Arabia, the IEA said.  

To discuss issues facing the chemical industry go to ICIS connect

By: Hilde Ovrebekk
+44 20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly