IEA Cuts Global Demand Forecasts, OPEC Cuts Output

The International Energy Agency (IEA) has cut its 2007 global oil demand growth forecast by 90,000 barrels per day (b/d) to 1.45mn b/d, citing the effect of higher crude prices and weakening US demand. This year the IEA sees world oil demand at 84.57mn b/d, 110,000b/d fewer than estimated last month, and the 2007 estimate is now 86.02mn b/d, a downwards revision of 200,000b/d. That translates into world oil demand growth of 1.2% this year and 1.7% next year, with the main impetus coming from China, with growth of 6.4% and 5.5% over the two years.

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