Global crisis prompts IEA to slash forecasts

The global economic downturn prompted the International Energy Agency to slash its forecast for oil demand growth yesterday by more than a fifth for the year.

The agency cut its prediction by 200,000 barrels a day, or 22 per cent, to 700,000. It also cut its forecast for daily global oil consumption this year to 89 million barrels a day.

The IEA said crude oil production by Opec countries rose to its highest level in more than three years in November to 30.7 million barrels a day.