IEA cuts oil demand forecast

By Dow Jones newswires

In its monthly oil market report, the International Energy Agency — which advises industrialised nations on oil policies — trimmed its projection for growth in global demand this year to 1 million barrels a day, down 180,000 barrels a day, citing weaker-than-expected demand in the second quarter. ../../../2014/08/iea-cuts-oil-demand-forecast/_quot.css;Remarkably low oil deliveries in both Europe and North America helped slash this report's estimate of global demand growth for the second quarter of 2014 to less than 700,000 barrels a day year-over-year — a low of more than two years,../../../2014/08/iea-cuts-oil-demand-forecast/_quot.css; it said.

This second quarter drop, weak refining activity in the industrialised nations of the Organization for Economic Cooperation and Development in June and an ../../../2014/08/iea-cuts-oil-demand-forecast/_quot.css;apparent sudden stop in Chinese crude imports../../../2014/08/iea-cuts-oil-demand-forecast/_quot.css; to build their stock inventory countered the threat to the market and supplies posed by mounting geopolitical risks in the oil-producing world, the agency said. ../../../2014/08/iea-cuts-oil-demand-forecast/_quot.css;Despite armed conflict in Libya, Iraq and Ukraine, the oil market today looks better supplied than expected, with an oil glut even reported in the Atlantic basin,../../../2014/08/iea-cuts-oil-demand-forecast/_quot.css; the report said.

The US and European Union sanctions on Russia over the annexation of Crimea aren't providing much support to the oil market either as they are ../../../2014/08/iea-cuts-oil-demand-forecast/_quot.css;highly selective../../../2014/08/iea-cuts-oil-demand-forecast/_quot.css; and can only be extended by one year by consensus. ../../../2014/08/iea-cuts-oil-demand-forecast/_quot.css;While the situation across these key producer countries remains more at risk than ever, so far the market appears confident that OPEC can deliver the production increase needed from it to meet rising demand expected in the second half of the year,../../../2014/08/iea-cuts-oil-demand-forecast/_quot.css; the IEA said.

Read more here: Business Spectator


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