The International Energy Agency forecast Thursday that global demand for oil would grow by 795,000 barrels per day to a total of 90.6 million barrels (mb/d), a lower estimate than its previous outlook, as a decline in Europe partially offset growth elsewhere.
But the IEA cautioned in a monthly report that falling oil prices did not necessarily foreshadow a “bear market” and added: “There are signs that some of the recent easing of upward price pressures could be relatively short lived.”
The agency pointed in particular to disruptions to crude oil supplies in countries such as Iraq, Libya and Nigeria, in addition to geopolitical threats in Iran, North Korea and Syria.
Demand “remains subdued” however, the IEA report noted.
“It has been exceptionally weak in the OECD, notably in Europe, where consumption in 2013 is expected to be the lowest since the 1980s,” it added in reference to members of the Organisation for Economic Cooperation and Development, the world’s most industrialised economies.
“While growth elsewhere is more robust, global demand came in below expectations in the first quarter of 2013 and our forecast for 2013 has been marginally trimmed” as a result, the IEA said.
On the supply side, crude oil from OPEC countries fell by 140,000 barrels per day in March to a total of 30.44 mb/d, while oil stocks held by OECD members declined to a total of 2.664 billion barrels at the end of February.
IEA trims 2013 oil demand growth outlook
