EIA cuts global oil demand forecast for 2012 and 2013

From a projected 800,000 barrels per day (bpd), the U.S. Energy Information Administration reduced its 2012 world oil demand growth forecast by 130,000 bpd to 670,000 bpd, saying it expects slower global economic growth. The agency also cut its oil demand growth estimate for 2013 by 360,000 bpd, from 1,090,000 to 730,000 bpd. The changes in its forecasts were reflected in the agency’s monthly report, and the EIA said there could most likely be slower growth in global oil and liquids demand because of less optimistic expectations for global economic growth, which were lowered by 0.1% in 2012 and 0.6% in 2013 against a month earlier. EIA Administrator Adam Sieminski explained that the lower expectations for economic growth could be attributed to the debt crisis in Europe and possible weak economic growth in China. But Sieminski emphasized that China, the Middle East and Brazil could experience growth oil demand next year. (July 11, 2012)