IEA: Oil Demand Sliding, Non-OPEC Oil Production Disappearing

For the seventh month in a row, the IEA cut its projections for oil demand for 2009. It reduced demand by 270,000 barrels a day to 84.4 million barrels a day, down 1.25 million barrels a day from 2008. Also, it reported that a lack of credit is killing non-OPEC production.

OPEC meets this weekend and many expect them to make further cuts to supply to prop up the price of oil, which has been sitting around $45 for a while now. According to the IEA, the cartel is complying with just 80% of the cuts it’s supposed to have implemented already. If demand is sliding even more than expected, we don’t see why they wouldn’t at least say they’re cutting supply.

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