Global oil demand to increase by 1.7m bbl/day in 2010 - IEA

13 April 2010 11:36  [Source: ICIS news]

LONDON (ICIS news)--Global oil demand is expected to rise by 1.7m bbl/day in 2010 compared to the previous year, the International Energy Agency (IEA) said in its monthly oil report on Tuesday.

The IEA added that oil demand would reach 86.60m bbl/day this year, up from 84.93m bbl/day recorded for 2009.

OECD oil product demand is expected to remain unchanged in 2010 as higher readings in North America and the Pacific have offset weak European data, where the petrochemical-led, manufacturing-based, and export-oriented economic recovery has appeared to have slowed, the agency said.

The report also said expectations of an accelerating economic recovery, spurring financial and commodity markets, and stronger oil demand ahead, have pushed crude oil futures to hit 18 month highs in early April.

“Nonetheless, underlying concerns remain that oil markets are overheated with WTI and Brent both recently trading around $85/bbl,” the IEA said.

Global oil supply fell by 220,000 bbl/day to 86.6m bbl/day in March on lower OPEC output, while non-OPEC supply was unchanged in March at 52.5m bbl/day, and up by 900,000 bbl/day year on year, according to the report.

Non-OPEC output for 2010 was revised up 220,000 bbl/day to 52m bbl/day, which reaffirmed a more optimistic supply outlook amid elevated price levels since the second quarter of 2009, the IEA said.

OPEC crude production fell by 190,000 bbl/day in March to 29m bbl/day, which was its first significant monthly decline in over a year, it added.

The report also said global refinery throughputs for the first quarter of 2010 were revised up by 800,000 bbl/day to 72.5m bbl/day - the first annual increase since the second quarter of 2008.

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By: Franco Capaldo
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