World 2009 oil demand seen lowest since 2004 – EIA

WASHINGTON (Reuters) – Despite rising optimism about the economy, the U.S. Energy Information Administration on Tuesday again slashed its forecast for 2009 world oil demand, lowering its estimate by 420,000 barrels per day to 83.67 million bpd, which would be the lowest level in five years.

The EIA said it expects world oil demand to fall by 1.8 million bpd this year from 2008’s levels as consumption remains weak because of the global economic downturn.

Its projection would place global oil consumption at the lowest level since demand was 82.41 million bpd in 2004.

With crude oil prices up to around $60 a barrel due to some positive economic indicators, many energy analysts and traders were anticipating that the EIA would not make another major cut in its oil demand forecast.

Reuters