Debt crisis to drive down oil demand: IEA

PARIS: The IEA on Wednesday lowered its projection for global oil demand this year in the face of a credit crisis in Europe and elsewhere that could drown economic recovery "in an ocean of public debt."

The International Energy Agency said oil prices, after suffering their biggest weekly decline in 18 months in early May on fears the Greek debt debacle could spread, are likely to average 77 dollars a barrel in 2010.

Worldwide oil demand is projected at 86.4 million barrels a day this year, up 1.9 percent from 2009 but 220 thousand barrels a day fewer than the IEA had previously estimated.

"The economic recovery is at risk of drowning in an ocean of public debt," the IEA said.