World oil consumption forecast raised by watchdog
Wednesday 13 October 2010
An energy watchdog lifted its forecast for world oil consumption today but played down fears that prices will top 100 US dollars a barrel.
Global demand is expected to reach 86.9 million barrels a day this year and 88.2 million barrels a day next year, the International Energy Agency (IEA) said, revising up its previous forecast by 300,000 barrels for each year.
Oil prices broke through the 80 US dollars a barrel mark earlier this month, and higher demand could prompt a further increase, which in turn could be passed on to the petrol pump or see business costs climb.
David Fyfe, editor of the IEA oil market report, tried to calm concerns and said there would be "comfortable levels of supply".
He said: "Prices in early October broke through the psychological 80 US dollars a barrel barrier, with many foreseeing more strength to come.
"Choruses of '100 dollars a barrel by next year' are being heard once more. Our own view, however, is that markets could remain comfortably supplied until well into 2011."
The IEA - the energy arm of the Organisation for Economic Co-operation and Development (OECD), a grouping of the world's richest nations - said changes were made after the latest economic forecast from the International Monetary Fund earlier this month.
The agency said stronger-than-expected economic growth in developing countries, outside the OECD, and increased demand for crude oil in the third quarter of the year in countries within the OECD, led to the upward revision.
The IEA expects oil demand to rise by 2.1 million barrels a day year-on-year in 2010, and the growth to slip back 1.2 million barrels a day in 2011.
- 1 Howard Jacobson: Let’s see the 'criticism' of Israel for what it really is
- 2 Gingers face extinction due to climate change, scientists warn
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Jennifer Lawrence face palms Emma Watson at Christian Dior show in Paris
Gingers face extinction due to climate change, scientists warn
Pamplona Running of the Bulls 2014: Briton critically injured in San Fermin festival
Elephant 'cries' while being rescued after 50 years of abuse in India
Sustained immigration has not harmed Britons' employment, say government advisers
British jihadist calls for 'flag of Islam' over Downing Street and Buckingham Palace
Australia facing international condemnation after turning around Sri Lankans at sea
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
There’s a nasty smell in the political air – and it’s coming from the Tories
iJobs Money & Business
£35000 - £40000 per annum + Benefits: Ashdown Group: HR Advisor - 6 Months Fix...
£37000 - £40000 per annum: Ashdown Group: IT Manager - Tolworth, Surrey - £40,...
£55000 - £65000 per annum + excellent package & bonus expectations: Real Staff...
£80000 - £90000 per annum + competitive: Real Staffing: A highly successful Co...