Global oil demand growth withstands high prices: IEA

LONDON (Reuters) – A healthy world economy is underpinning oil demand growth, but high prices are slowing consumption in the United States — the world’s biggest fuel burner, the International Energy Agency said on Tuesday.

The energy adviser to 26 industrialized countries also said output constraints in Nigeria and Iraq had deflated OPEC’s spare capacity to only 1.9 million barrels per day (bpd).

Supply disruptions to the 85 million bpd world market — whether real or threatened — have driven oil to historically high levels near $70, leading some to suggest that record prices will brake demand expansion.

“Strong economic growth is an important counterbalance, but on the whole we’re seeing evidence of high price effects coming through,” said Lawrence Eagles, head of the IEA’s oil industry and markets division.

Reuters