IEA cuts outlook for global oil demand
2011-05-12 11:50:07
The International Energy Agency (IEA) cut its outlook for global oil demand by 190,000 barrels per day on Thursday because of high prices and unexpectedly weak growth in rich countries.
"Forecast global oil product demand growth for 2011 is trimmed on persistent high prices and weaker IMF (International Monetary Fund) GDP projections for advanced economies," the IEA said, putting total demand in 2011 at 89.2 million barrels per day.
Commenting on sharp falls in the price of oil at the beginning of May, the IEA said: "A faltering economic recovery, stronger dollar and speculative commodity sell-off were variously cited as underpinning the correction.
"True, renewed concerns about the economic impact of high prices and shaky economic statistics from the US, China and Germany may have contributed to a degree of profit taking.
"But as the dust settles, prices have again begun to creep higher."
The IEA added: "The market bull run may have legs for a while longer."