Global oil demand hit by economic slowdown and high prices – IEA

10 November 2011 13:42  [Source: ICIS news]

LONDON (ICIS)--The global economic slowdown and persistent high prices will continue to stifle worldwide demand for crude oil, the International Energy Agency (IEA) said on Thursday.

In its latest monthly oil market report, the agency revised down predictions for global oil demand for 2011 and 2012.

With lower-than-expected third-quarter crude oil consumption figures in the US, China and Japan, the IEA forecasts world oil demand for this year to be 89.16m bbl/day, a fall of 70,000 bbl/day from its previous forecast.

The agency reduced its 2012 demand projection to 90.47m bbl/day, down 20,000 bbl/day from previously.

Despite revising down its predictions, the IEA still expects global oil demand to rise, with “gasoil continuing to provide the greatest impetus for demand growth”.

“Global oil demand is expected to increase by 0.9m bbl/day year on year in 2011, and by 1.3m bbl/day year on year in 2012,” the report said.

Higher output from Libya, Saudi Arabia and Angola saw supply from OPEC rise by 95,000 bbl/day, to reach 30.01m bbl/day in October, it said. 

Libyan oil production recovered “far faster” than expected following the downfall of former leader Colonel Muammar Gaddafi, with output from the country now reaching 530,000 bbl/day, according to the report.

The IEA forecasts output from Libya to continue to increase, reaching 1.17m bbl/day by the fourth quarter of 2012.  

Recovering non-OPEC output also helped boost global oil supplies, which rose by 1m bbl/day from September to reach levels of 89.3m bbl/day in October, the IEA said.

Meanwhile, the Organisation for Economic Co-operation and Development (OECD) industry stocks fell by 11.8m bbl in September from August, because of declines in middle distillates and fuel oil inventories resulting from significant refinery run cuts.

“October preliminary data points to a 34.3m bbl draw in OECD industry stocks,” the report said.  

By: Neha Popat
+44 208 652 3214

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