follow us Twitter Facebook
OKLAHOMA INDEPENDENT PETROLEUM ASSOCIATION ABOUT | CONTACT
OIPA News
<< Back to News

Global oil demand expected to drop

July 02, 2009
TOPICS: Crude oil
Sluggish economic growth will slow global demand according to the International Energy Agency, as reported by the New York Times:
The I.E.A. projected in its 2009 Medium-Term Oil Market Report that world oil demand would grow an average of 0.6 percent, or 540,000 barrels a day, annually over the 2008 to 2014 period, reaching 89 million barrels a day by 2014.
During 2008, demand was 85.8 million barrels a day.
In the last report released a year ago, the agency forecast global demand would grow by an average of 1.6 percent a year from 2008 to 2013.
The revision was because of “weaker demand, contract renegotiation, reduced cash flow, geopolitical turmoil and increased resource nationalism,” it said.
“The global financial crisis has turned the economic landscape upside down, with huge implications for the oil and gas sector,” Nobuo Tanaka, executive director of the International Energy Agency, said.
The I.E.A. report says demand will likely fall in 2010, making it the first time crude oil demand has dropped for two consecutive years since the early 1980s:
Consumption should then pick up — led mainly by developing countries in Asia and the Middle East — to average 86.8 million barrels a day in 2012, the first year during the forecast period that it will rise, according to the Paris-based agency.
 
<< Back to news


AD

Topic

AD