IEA revises up 2010 and 2011 global oil demand on positive data

13 October 2010 11:44  [Source: ICIS news]

LONDON (ICIS)--The International Energy Agency (IEA) revised up global oil demand for this year and next by 0.3m bbl/day mainly due to better-than-expected data and a positive macroeconomic environment, it said on Wednesday.

The agency noted that demand for 2010 and 2011 would average 86.9m bbl/day and 88.2m bbl/d respectively.

Revisions were due to new data showing much stronger-than-expected readings for the third quarter, notably in the OECD, and also updated GDP and price assumptions, the IEA said in its October report.

The agency noted that demand growth in OECD was due to warm weather in the Pacific, sustained heating oil stocks builds in Europe ahead of winter and much stronger products, despite the “slightly lower GDP assumptions.”

Meanwhile, non-OECD oil demand was also revised up for 2010 and 2011 by an average of 160,000 bbl/day on “stronger-than-anticipated preliminary readings…. as well as slightly higher GDP assumptions.”

The report said that global oil supply fell by 150,000 bbl/day to 86.9m bbl/day in September on lower non-OPEC output, but was up by 1.5m bbl/day year on year.

On prices, at 10:00GMT November Brent was trading at $84.48/bbl, up $0.98/bbl from the previous close, while November NYMEX was at $82.89/bbl, up $1.21/bbl.

This recent upside was largely supported an increase in China crude imports in September, expectations of more US stimulus policies and a weaker dollar.

On Tuesday, OPEC revised this year's world oil demand up in its October report, but left the forecast for 2011 unchanged.

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By: Giovanni Coiro
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