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Wed 12 May 2010 01:09 PM

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IEA trims 2010 oil demand growth forecast

Demand this year to grow to 86.4m barrels per day (bpd), up from 84.8m bpd.

IEA trims 2010 oil demand growth forecast
OIL DEMAND: Global oil demand growth this year will be slightly slower than previously expected, the International Energy Agency (IEA) said on Wednesday. (Getty Images)

Global oil demand growth this year will be slightly slower than previously expected, the International Energy Agency (IEA) said on Wednesday, lowering its forecast by 50,000 barrels per day to 1.62 million bpd from its estimate last month. Demand this year will grow to 86.4 million barrels per day (bpd), up from 84.8 million bpd, the Paris based agency said in its latest monthly oil market report.

David Fyfe, head of the IEA's Oil Industry and Markets Division, said the downward revision was in response to new historical data and that demand from emerging markets would continue to push up the world's oil use.

"The overall baseline has been revised by 0.2 million barrels per day lower but this is an accounting change," Fyfe told Reuters.

"The demand growth trend is same and all of it is coming from non-OECD countries."

But relatively high oil prices might affect the long term trend of oil use in developed countries, he added. Oil demand is seen by many to have peaked in developed economies.

"Higher prices are excavating the structural change in OECD countries, so we will see impact from higher prices," Fyfe said.

The agency said in the monthly report that it has deployed a higher oil price assumption of near $77 a barrel for 2010. It did not specify the previous assumption.

International benchmark US crude futures were trading at around $76.50 and North Sea Brent futures were around $81 on Wednesday.

The IEA, adviser to 28 industrialised countries, said OECD oil stocks rose to 60.5 days of forward cover at the end of March from 59.9 days at the end of February.

The agency cut its estimate for 2010 demand for crude from the Organisation of the Petroleum Exporting Countries (OPEC) by 400,000 bpd to 28.7 million bpd. (Reuters)

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