Business | Oil & Gas
IEA likely to further cut demand forecast
World oil demand is shrinking more quickly than first thought due to weak consumption in some major consuming countries, the International Energy Agency's head said yesterday.
- Reuters
- Published: 23:32 June 2, 2008
London: World oil demand is shrinking more quickly than first thought due to weak consumption in some major consuming countries, the International Energy Agency's head said yesterday.
The IEA may cut its forecast for world oil demand growth further, said Nobuo Tanaka, executive director of the agency which advises 27 industrialised countries.
He also conceded that a forecast of around 100 million barrels per day (bpd) for oil supply in 2030 was "more reasonable" than a higher IEA estimate which some industry officials doubt can be achieved.
"We are saying that we may see a further demand slowdown for the June report," Tanaka said. "How much, I don't know."
"We think yes the demand is slowing, especially in OECD [Organisation of Economic Co-operation and Development] countries."
A further cut to 2008 demand would follow evidence that record prices are slowing oil use in the industrialised world. Further pressure could come as other countries, such as Indonesia, raise domestic fuel prices.
The IEA, whose forecasts are an industry benchmark, now predicts world oil demand will rise by 1.03 million bpd in 2008. It has more than halved its estimate from 2.2 million bpd in July 2007. Its next Oil Market Report, which will include the latest supply and demand forecasts, is scheduled to be released on June 10.
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