IEA: Recession Not As Killer As We Thought

oil derrick gushing

The IEA says the slump in oil demand will not be as severe as previously believed.

AP – 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 per cent from 2008 levels — better than the 2.7 per cent 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 per cent.

“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.”

Meanwhile, the United States’ energy group, the EIA, lowered its U.S. demand projections for oil, and predicted a global surplus of oil for 2010:

Reuters: The EIA cut its forecast for world oil demand growth in 2010 by 30,000 barrels per day to daily demand of 84.58 million bpd. But it boosted its forecast of global oil production growth by 150,000 bpd to average output of 84.65 million bpd.

The EIA’s new monthly short-term energy forecast would mean a daily world oil supply surplus of 70,000 barrels.

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