IEA Revises down Oil Demand Forecasts

The International Energy Agency (IEA) trimmed Thursday its global oil demand forecasts for this year and next due to the slowing of global economic growth.

According to the Paris-based agency, global oil demand is estimated to remain at an average 86.2 million barrels a day this year, almost the same level as last year, and reach 86.5 million barrels a day next year.

The forecast cuts of 330,000 barrels a day this year and 670,000 barrels a day next year took into account the slashed global economic growth forecast of 2.1 percent for next year by the International Monetary Fund (IMF).

The IMF said on Nov. 6 that the world's developed economies are headed for the first full-year contraction since World War Two.

Oil demand in developed nations belonging to the 30-country Organization for Economic Cooperation and Development (OECD) is estimated to fall by 2.7 percent this year and by 1.6 percent in 2009, the IEA said.

In general, global demand for oil will continue to rise this year and next year by 0.1 percent and 0.4 percent respectively, it added.