The IEA said in its monthly report released on Thursday demand on oil next year is likely to face a slowdown due to the weak economic recovery. Demand on oil is expected to increase by 1 million barrels in 2013, following the rise of 0.8 million barrels this year. Although the rise in higher in 2013, yet it is still below the pre-credit crunch growth trend.
As for OPEC, the production capacity is predicted to rise by 245,000 barrels a day to 35.03 million barrels, which is 85% lower than the IEA estimates for 2011. The decline will be buoyed by the drop in production capacity in Iran, Qatar and Algeria.
The IEA clarified that OPEC capacity surged by 750,000 barrels a day this year after the recovery in Libya following the end of its revolution.