Global oil demand seen rising amid recovery
The slump in global oil demand in 2009 will be less severe than previously forecast and consumption will increase next year as the world economy stabilizes, the International Energy Agency said on Thursday.
By Agencies |
PARIS: The slump in global oil demand in 2009 will be less severe than previously forecast and consumption will increase next year as the world economy stabilizes, the International Energy Agency said on Thursday.
The Paris-based IEA, which advises oil-consuming countries, said crude demand would reach 84.4 million barrels a day this year, down 2.2 percent from 2008 levels _ better than the 2.7 percent decline the agency forecast previously.
The IEA also lifted its forecast for global oil demand next year to 85.7 million barrels a day, or half a million barrels a day more than its previous forecast, for growth of 1.5 percent.
``There is growing evidence that the global economy may be finally stabilizing,'' the IEA said in its monthly oil report. Despite this, the IEA warned that demand in OECD countries ``is poised to remain weak for the remainder of the year.''
The IEA cautioned as well that ``the specter of a double-dip, 'W-shaped' recession which would undermine oil demand growth next year, cannot be entirely discounted.''
Crude oil prices have risen from $68 a barrel to over $72 a barrel in two days as the dollar weakened to its lowest level this year. Benchmark crude for October delivery was up 85 cents at $72.16 a barrel at midday Thursday Singapore time in electronic trading on the New York Mercantile Exchange.
Because crude is priced in the U.S. currency, it becomes cheaper when the dollar falls.
The Paris-based IEA, which advises oil-consuming countries, said crude demand would reach 84.4 million barrels a day this year, down 2.2 percent from 2008 levels _ better than the 2.7 percent decline the agency forecast previously.
The IEA also lifted its forecast for global oil demand next year to 85.7 million barrels a day, or half a million barrels a day more than its previous forecast, for growth of 1.5 percent.
``There is growing evidence that the global economy may be finally stabilizing,'' the IEA said in its monthly oil report. Despite this, the IEA warned that demand in OECD countries ``is poised to remain weak for the remainder of the year.''
The IEA cautioned as well that ``the specter of a double-dip, 'W-shaped' recession which would undermine oil demand growth next year, cannot be entirely discounted.''
Crude oil prices have risen from $68 a barrel to over $72 a barrel in two days as the dollar weakened to its lowest level this year. Benchmark crude for October delivery was up 85 cents at $72.16 a barrel at midday Thursday Singapore time in electronic trading on the New York Mercantile Exchange.
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Because crude is priced in the U.S. currency, it becomes cheaper when the dollar falls.
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