IEA trims oil demand forecast
The International Energy Agency has trimmed its forecast for global oil demand this year, saying increased evidence of economic slowdown has raised fears of a double-dip recession.
The Paris-based agency says in its monthly report that global oil demand this year will be 89.5 million barrels a day on average, or 60,000 barrels a day fewer than the IEA's previous forecast.
In its report Wednesday the IEA says "concerns over debt levels in Europe and the U.S., and signs of slowing economic growth in China and India have spooked the market and raised fears in some quarters of a double-dip recession."
The IEA said its forecast for global economic growth of more than 4 per cent this year and next "might seem optimistic in the present climate."
The IEA also lifted its forecast for oil demand growth next year, as nuclear power outages in Japan will lead to greater use of oil for power generation.
The IEA now expects global oil demand to grow by 1.6 million barrels a day on average in 2012 to 91.1 million barrels a day.