IEA cuts oil demand forecast
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.