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By Samuel R. Avro on Nov 27, 2008 with no responses

IEA Economist: Oil Demand May Exceed Peak Levels in 2010-2011

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Fatih Birol, the chief economist of the International Energy Agency, told a seminar in Warsaw that global demand for oil will rebound in 2010-2011 and prices may then exceed their peak levels of July 2008.

He said that many projects are being cancelled due to the global economic crisis, but “demand will eventually rebound in 2010-2011. We may see prices going even higher than we saw this summer.”

He reiterated that the current slump in crude oil prices will persist through 2009.

“But there is still a lot of demand from countries such as India or China,” he added. “How oil prices develop will be a function of how the economy will develop.”

When asked about the upcoming OPEC meeting where they are set to discuss a further production cut, he commented “I am sure OPEC will make the right decision that will take into consideration the fragility of the global economy.”