IEA cuts 2011 oil demand growth estimate, ups 2010

IEA cuts 2011 oil demand growth estimate, ups 2010

The IEA revised its 2011 growth forecast down by 60,000 bpd to 1.21 million bpd from its previous report.

October 13, 2010 1:06 by Rasha Reslan

Global oil demand growth is expected to accelerate for the rest of this year but is revised lower for 2011 and could slow if the world economy disappoints, the International Energy Agency (IEA) said on Wednesday.

Global oil demand next year will still be higher at 88.16 million barrels per day (bpd) compared with 86.94 million bpd this year, but the rate of growth will slow.

The IEA revised its 2011 growth forecast down by 60,000 bpd to 1.21 million bpd from its previous report but revised up its 2010 demand growth forecast by 260,000 bpd.

“The market should remain pretty well supplied at least until the middle of next year,” said David Fyfe, head of the IEA’s oil industry and markets division.

“If the lower case GDP scenario materialises, that would trim demand quite dramatically and the market would look very well-supplied through 2011.”

(Reporting by Emma Farge; editing by Anthony Barker)