IEA Slashes World Oil Demand Expectations
The International Energy Agency (IEA) slashed its global oil demand growth forecasts yesterday in response to mounting evidence that the world economy is far weaker than previously thought.
Demand has grown this year at the slowest rate in a generation. Next year it is now expected to expand by only 350 000 barrels per day (bpd) - down 340 000 bpd from the IEA's prediction just a month ago.
The revision follows the release of sharply weaker economic forecasts by the International Monetary Fund, which said last week that the world's developed economies were headed for the first full-year contraction since World War 2.
Crude is holding up relatively well under the circumstances, with December half a dollar lower at $57.71/barrel.
Demand has grown this year at the slowest rate in a generation. Next year it is now expected to expand by only 350 000 barrels per day (bpd) - down 340 000 bpd from the IEA's prediction just a month ago.
The revision follows the release of sharply weaker economic forecasts by the International Monetary Fund, which said last week that the world's developed economies were headed for the first full-year contraction since World War 2.
Crude is holding up relatively well under the circumstances, with December half a dollar lower at $57.71/barrel.
