IEA says potential for oil supply crunch by 2014

NEW YORK — Oil markets may face a supply crunch by 2014 if global GDP growth hits 5% in the coming years, the head of the International Energy Agency said Tuesday.

“If economic GDP growth gradually rises through 2011 and 2012 … then oil demand will come back and by 2014 you will maybe have a supply crunch,” Nobuo Tanaka said at the Renewable Energy Finance Forum in New York, noting economic growth would have be around 5%.

The global economic crisis has battered fuel demand, knocking crude off record peaks near US$150 a barrel hit last July and causing inventories to swell.

Prices have rebounded from below US$33 in December – trading around US$67 on Tuesday – on signs of an economic recovery that could lift oil consumption.

Financial Post