LONDON (ShareCast) - The International Energy Agency (IEA) has lowered its oil demand for forecast for the next five years due to concerns over the global economy.
Having cut its daily oil demand forecasts by 3m barrels a day for the period,
it now sees oil demand growing at between 0.4% and 1.4% a year after 2009. That would result in 2014 demand of between 85m and 89m barrels a day.
"The global financial crisis has turned the economic landscape upside down, with huge implications for the oil and gas sector", said Nobuo Tanaka, Executive Director of the IEA.
The IEA outlined two contrasting scenarios; one envisaging a rapidly tightening oil market from 2012 onwards and one showing OPEC spare capacity remaining around 6m barrels a day for the entire outlook period.
"Whether we end up facing a supply crunch again by mid-decade, or with a more comfortable buffer of supply flexibility, depends largely on the pace of economic recovery and government action on efficiency", said Tanaka (Berlin: TDJ.BE - news) .
Send Article by Email
Send Article by IM
Blog This with Y! 360
Printable View
