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By Samuel R. Avro on Mar 13, 2009 with no responses

Int’l Energy Agency Cuts Forecast for World Oil Demand

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The International Energy Agency on Friday, in it’s monthly report, revised it’s forecast for global oil demand by 270,000 barrels per day less than previously expected.

The IEA now expects world demand for oil to be 84.4 million barrels a day in 2009, which represents a decline in demand of 1.25 million barrels a day, or 1.5 percent, from 2008.

The IEA said that “the eventual resumption of global demand growth will largely depend upon much stronger economic performance than is currently the case” among the world’s biggest energy consumers, but that the latest indicators are “not encouraging.”

The revision is the agency’s seventh consecutive reduction of its 2009 crude demand estimate and is driven by declines in North America, Asia and the former Soviet Union, it said. The report also said that demand would drop for a second consecutive year for the first time since 1982-1983.

The Organization of Petroleum Exporting Countries (OPEC) is scheduled to meet in Vienna on Sunday, where the 12-member cartel will discuss reducing their output even further than their already reduced 4.2 million barrels per day.

The cartel, which together supplies 40 percent of the world’s oil, warned that they need oil “to remain at levels that support energy investment.” They said that the main agenda of the upcoming meeting is to control what they called a “renewed pressure on prices.”

OPEC member nations produced 28 million barrels a day of crude oil last month, 1.1 million barrels a day less than in January, the IEA said.