Slower oil demand growth forecast for 2009

GROWTH DROP: The International Energy Agency says oil demand growth will drop next year. (Getty Images)

World oil demand growth will slow slightly to 890,000 barrels per day (bpd) in 2009 to 87.7 million bpd, down from growth of 860,000 bpd this year, and the need for OPEC oil will also fall, the IEA said on Thursday.

High oil prices have contributed to lower demand in developed countries, although this was offset by robust growth in emerging economies, the International Energy Agency said in its monthly report.

While demand eases, non-OPEC supply is expected to increase to around 640,000 bpd to 50.6 million bpd in 2009, compared with a roughly 420,000 bpd increase this year.

At the same time, the need for crude from the Organization of the Petroleum Exporting Countries (OPEC) will ease to between 31.1 million bpd and 31.2 million bpd, down by some 600,000 bpd from 2008.

Last month, OPEC crude supply increased by 350,000 bpd in June to 32.4 million bpd, boosted by a rise in Saudi Arabian supply to 9.45 million bpd and by exports from floating storage that lifted Iranian supply to 3.8 million bpd.

Overall OPEC capacity should rise by about 1 million bpd by the end of this year. (Reuters)

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