IEA sees oil demand slowing

IEA sees oil demand slowing

PARIS – The hunger to consume oil products seems to be slowing, the IEA reported yesterday against a background of falling prices and a decision by Opec to maintain its output ceiling.

The growth of consumption would be slightly less strong than expected this year and next, mainly in the United States and Mexico, the agency said. It also noted that a downgrading of hurricane forecasts, improved prospects for damaged facilities in Alaska, and the effects of high prices on consumer behaviour had taken some of the heat out of oil prices.But risks to global economic growth “are increasing”, and therefore “the risks to oil product demand growth projections have also risen”, the IEA noted.The International Energy Agency said it now expected demand for oil to rise by 1,3 per cent this year instead of 1,4 per cent estimated previously to 84,7 million barrels per day, a reduction of 100 00 barrels day from the August forecast.And demand would rise by 1,8 per cent next year instead of 1,9 per cent forecast last month, to 86,2 mbd.The Organisation of Petroleum Exporting Countries, which decided Monday to hold its production ceiling at 28 million barrels per day, had been producing about 30 mbd for 20 months and experts were focusing on the possibility that this would be reduced next year, the agency said.There was also continuing concern that Opec had only a narrow cushion of spare production capacity.Nampa-AFPIt also noted that a downgrading of hurricane forecasts, improved prospects for damaged facilities in Alaska, and the effects of high prices on consumer behaviour had taken some of the heat out of oil prices.But risks to global economic growth “are increasing”, and therefore “the risks to oil product demand growth projections have also risen”, the IEA noted.The International Energy Agency said it now expected demand for oil to rise by 1,3 per cent this year instead of 1,4 per cent estimated previously to 84,7 million barrels per day, a reduction of 100 00 barrels day from the August forecast.And demand would rise by 1,8 per cent next year instead of 1,9 per cent forecast last month, to 86,2 mbd.The Organisation of Petroleum Exporting Countries, which decided Monday to hold its production ceiling at 28 million barrels per day, had been producing about 30 mbd for 20 months and experts were focusing on the possibility that this would be reduced next year, the agency said.There was also continuing concern that Opec had only a narrow cushion of spare production capacity.Nampa-AFP

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