IEA nudges up 2009 oil demand, sees higher supply

LONDON (Reuters) – World oil demand will rise slightly more than expected in 2009, but supplies will also increase, the International Energy Agency said on Tuesday.

Demand will rise by 930,000 barrels per day (bpd) in 2009, 60,000 bpd more than previously forecast, the IEA said in its Oil Market Report for August. It cited higher European demand for the revision.

Oil prices have fallen steeply from a record high of $147.27 a barrel on July 11 to about $113, pressured by evidence of slowing demand and economic growth in industrialized countries.

“The basic fundamentals look easier going forward, and we’re pleased to see that,” David Fyfe, an IEA analyst and acting head of its Oil Industry and Markets Division, told Reuters.

Reuters