IEA predicts lower demand for oil

The International Energy Agency’s forecast yesterday of lower-than-expected demand for oil next year did not prevent further price rises on world oil markets. The price of a barrel of London Brent crude rose $1.30 to settle at $77.68 last night, despite the IEA’s decision to reduce its forecast for global oil demand in 2008 by about 160,000 barrels.

The IEA said slower economic growth in the US and Europe would result in oil demand for 2008 coming in below its previous estimates. It predicted demand of 88.02m barrels a day next year, down from the 88.16m it forecast last month, and also forecast falling demand in the final quarter of this year, to 85.92m barrels a day.

Independent