IEA reduces world oil demand forecast

Energy group sees oil demand increasing 1.9% in 2008

By Tom Stundza -- Purchasing, 2/13/2008 8:19:00 AM

The International Energy Agency (IEA) has scaled back its forecast for world oil demand this year to 1.9% growth, or the equivalent of 87.6 million barrels/day. Previously, the Paris-based energy agency had forecast 87.8 million barrels/day of use.

A MarketWatch report says the IEA took its action after the International Monetary Fund scaled back its economic growth predictions for several key countries, including the U.S., which may lead to a downturn in transportation fuel demand. As reported on Purchasing.com, economists now say the world economy will slow to a 4.1% growth rate in 2008, down from a 4.4% growth rate forecast in October. Growth is estimated to have been 4.9% in 2007. However, the IEA insists that strong economic growth from the Middle East, China and India will keep overall global oil demand healthy and offset an expected downturn in the U.S.