Energy appetite remains hearty

Government ups its estimate for U.S. and world demand growth despite high prices.

NEW YORK (Reuters) – Soaring energy prices may not undercut world oil demand growth as much as some experts had feared, as consumers become accustomed to the higher costs, the U.S. Energy Information Administration said Tuesday.

The EIA, the statistical wing of the Department of Energy, reported small upward revisions to its world and U.S. demand growth forecasts in its monthly oil outlook.

“High prices are having an impact but they are not yet leading to a demand decline, just a slowing,” said EIA analyst Doug MacIntyre. “Demand growth could be stronger this year than last year despite higher costs. It may be that people are sort of adjusting.”

The EIA bumped up its 2006 world petroleum consumption growth forecast by 100,000 barrels to 1.7 million barrels per day (bpd) and added it expects the world to add another 1.9 million bpd to demand in 2007.

Reuters