11 May 2007 - 12:34
  • News Code: 104297
IEA Shaves Expected Oil Demand This Year

The International Energy Agency shaved its forecast for world oil demand this year but warned on Friday that markets for oil and petrol could tighten, pointing to further price rises.

The IEA focused on political trouble in Nigeria, a fall in OECD oil stocks and of reserves of petrol in the United States before the summer "driving season" there, and strains in the global refining sector.

 

It reduced its forecast figure for global demand for oil in 2007 by 0.1 million barrels per day from its estimate a month ago to 85.7 million barrels because of mild weather in the northern hemisphere and on a slight reduction of its forecast for demand in China.

 

But it warned: ""With average (petrol) retail prices in the US near record highs at just over three dollars per gallon several weeks ahead of the start to the summer driving season, concerns over supplies are being raised."

 

It continued: "Underlying worries about product availability in the summer are concerns that geopolitics could threaten crude supplies, mostly in Nigeria."

 

It said that since the Organization of Petroleum Exporting Countries was "apparently unconvinced of the need to review crude production before its scheduled September meeting, steady output at current levels would lead to the group undershooting our calculated range for a call on it crude, and thus tightening stock further."

 

PIN/AFP

News Code 104297

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