IEA: Oil prices weakening demand

Global oil demand growth in the next few years may be weaker than previously expected because of high prices, which hit a record in April, an International Energy Agency analyst said Wednesday.

The IEA, adviser to 26 industrialized countries, plans to release a new forecast for mid-term oil demand growth in July. In December, the agency said demand would rise 1.8 million to 2 million barrels a day from 2007 to 2010.

“Due to the prolonged high prices we’ve seen and what appears to be a relatively tight market, we’d probably expect somewhat lower mid-term demand growth than we might have expected a year ago,” IEA analyst Jeff Brown told Reuters.
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