IEA cuts oil demand forecast
The IEA has said that oil demand will drop of this quarter due to the European economy and Hurricane Sandy
The International Energy Agency (IEA) lowered its world oil-demand forecast for this quarter for a second time, citing weakness in Europe's economy and disruption to US fuel delivery and travel by Hurricane Sandy.
Global consumption will average 90.1 million barrels a day this quarter, which is 290,000 barrels a day, or 0.3 per cent less than previously forecast. Demand will expand by 670,000 barrels a day this year, to 89.6 million, the agency said, shaving 60,000 barrels a day from its previous annual growth forecast.
The Organisation of Petroleum Exporting Countries (Opec) will need to supply 30 million barrels a day this quarter, 500,000 barrels a day less than previously projected because of the weaker demand outlook and expectations for increased non-Opec supply.
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