IEA Sees Clear Signs That Demand Erosion Is Underway

NASDAQ – U.S. light, sweet crude prices surged to a record $75.35/bbl last month, fueled by a wall of investment money from hedge and pension funds and on anxiousness over the supply outlook for Organization of Petroleum Exporting Countries members Iran and Nigeria.

The IEA said unusually warm winter weather had contributed to weaker oil demand, with falling natural gas prices capping the tendency to switch between fuels.

These factors underpinned the IEA’s biggest downward revisions yet to its growth forecasts in the first half of this year, with growth being slashed by as much as 430,000 b/d to substantially below the 1 million b/d mark (see table attached).
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