The International Energy Agency once again slashed its oil demand projections. It now sees global demand at 84.7 million barrels per day, a 1 million barrel per day drop from the year before.
The IEA cited the revised GDP figures from the IMF which anticipate global growth to be just .5%. Developing nations have significantly slowed their demand for oil, and according to Bloomberg, the IEA described Asia and Russia as “particularly grim.”
The IEA did not change it’s 2008 demand estimate, which was down .4% compared to 2007. If this estimate holds and demand drops again for 2008, it will be the first time the world has experienced back to back years of oil decline since 1982/83.