World oil demand growing

The International Energy Agency has raised its forecast for 2007 world oil demand growth, following revisions to its outlook for China, and told Opec that any further supply cuts could markedly tighten the market.

The agency that advises 26 industrialised nations said oil stocks held by its members fell by 40.2 million barrels in December, leaving industrialised countries with enough fuel to meet demand for 53 days.

Lawrence Eagles, head of the IEA’s oil industry and markets division, said the downward trend continued in January as Opec output cuts already in train made themselves felt.

Opec has noted that its 1.7 million barrels per day reduction has removed much of the excess from the 85.5 million bpd world market. Ali Al Naimi, oil minister of top exporter Saudi Arabia, has said more cuts probably will not be needed.
That view would find support at the IEA.

TradeArabia