IEA trims 2010 oil demand growth forecast

World oil demand will rise less than previously thought next year and evidence of a “bottoming out” of the recession is patchy at best, the International Energy Agency (IEA) said. World oil demand will rise by 1.3 million barrels per day (bpd) in 2010 to average 85.3 million bpd, the Paris-based IEA said in its latest monthly report. The increase is 100,000 bpd less than previously forecast. The agency also revised upwards global outright demand in 2010 by 70,000 bpd on the basis of higher fuel use in Asia and made a larger upward adjustment for 2009 demand, which is now assessed at 83.9 million bpd. That barely changes the sharp contraction in world oil demand expected in 2009 because of the recession, the IEA said, forecasting fuel use this year would be 2.35 million bpd lower than in 2008. The IEA cited a contraction in industrial production as a major limitation on demand and said global gas oil consumption — a key indicator of economic health — was significantly subdued. Only China and India were registering growth in industrial production and elsewhere production was still contracting, although the pace of contraction had slowed. (August 12, 2009)