IEA cuts forecast on global oil demand

Global oil demand will increase by 0.8 million barrels per day (mln bpd) (0.9 percent) to 89.9 mln bpd in 2012, the International Energy Agency (IEA) said in a report on oil market, published on Friday.

This level of global oil demand is by 0.3 mln bpd less than the level, predicted by IEA last month. The revision was made as the economic growth rate that underpins the global oil demand outlook has been reduced to 3.3 percent from 4.0 percent previously.

According to the IEA's estimates, non-OPEC supply fell by 0.2 mln bpd to 53.2 mln bpd in January on lower global biofuels output, an escalation of conflict in Syria and between Sudan and South Sudan, and continuing outages in the North Sea.

However, the IEA expects non-OPEC supply to rebound, increasing by 0.9 mln bpd in 2012.

According to the agency's estimates, OPEC oil supply increased to 30.9 mln bpd in January, which is the highest level since October 2008. The main driver of the supply growth was a steady ramp-up in Libyan production and sustained output from Saudi Arabia and the UAE.


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