IEA cuts 2008 oil demand growth forecast

World oil demand growth this year will be lower than previously forecast and could fall further if an economic slowdown in top consumer the United States accelerates, the International Energy Agency said on Wednesday.
The adviser to 27 industrialised countries in its monthly Oil Market Report cut its world oil demand growth forecast to 1.98 million barrels per day (bpd), down 130,000 bpd from its forecast last month.
Stocks fell by 38.1 million barrels in November last year, extending the move below the five-year average and equalling 51 days of forward cover, or future demand.
“It shows that over the past five months, the oil market has tightened. There’s no doubt about that,” said Lawrence Eagles, head of the IEA’s Oil Industry and Markets division.
“In terms of forward cover, we’re at the lowest since November 2003.”
In last month’s report, the IEA had raised its forecasts for oil demand growth for 2008 to 2.1 million barrels per day, fuelled notably by strong growth in the Middle East.
The IEA’s concern about tightening stocks come ahead of an OPEC meeting next month in which the producer group could consider consumers’ calls to pump more oil.

Guardian