Business | Oil & Gas

EIA paints grim view of oil supply in 2008

The US government's energy forecaster offered a grim view of global oil market supply yesterday, cutting its prediction for supplies from both Opec and non-Opec countries for 2008 despite tight fundamentals this summer.

  • Reuters
  • Published: 23:38 April 8, 2008
  • Gulf News

Washington: The US government's energy forecaster offered a grim view of global oil market supply yesterday, cutting its prediction for supplies from both Opec and non-Opec countries for 2008 despite tight fundamentals this summer.

For the first time ever, the US Energy Information Administration boosted its full-year price forecast for West Texas Intermediate crude oil - the US benchmark - to above $100 a barrel.

A slowing US economy is not enough to put the brakes on soaring global oil demand, the EIA said in its monthly oil market report. World oil consumption is still expected to grow by 1.2 million barrels per day (bpd) in 2008, the EIA said.

"The global oil market remains fundamentally tight entering the second quarter, despite a slowdown in US oil consumption and growing risks to global economic growth," it said.

For 2008, EIA raised its forecast to $100.61 per barrel from the $94.11 projected a month ago.

For 2009, EIA raised its forecast to $92.50 from $85.92 a month ago.

Energy: Oil prices hold firm

Oil prices held firm yesterday after a refinery fire in Europe pressured already tight stocks of refined products and the US government's energy forecaster predicted supplies would struggle to keep pace with demand.

US crude fell by eight cents to $109.01 a barrel by 1452 GMT after a $3 jump on Monday. London Brent crude shed 14 cents to $107.

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