World Oil Demand Up, Says IEA; OPEC Unwilling to Ease the Pressure

The International Energy Agency (IEA) has revised the 2007 world oil demand, increasing the estimate by 150 kb/d to 85.8 mb/d. The IEA states that demand forecasts for 2008 are slightly higher, yet the Organization of Petroleum Exporting Countries (OPEC) has refused to increase oil outputs despite pleas from IEA and world leaders.

According to the IEA report issued Jan. 16, 2008, the hike in demand is based on stronger-than-expected deliveries in Asia and the Middle East, as well as poor developments in the globalization of the economy.
In a phone interview with Dow Jones, Libya’s top oil official agreed with OPEC, saying that consumers have enough supply and that the price of crude is already dropping.

As if to corroborate that statement, the IEA report shows that the global supply in the fourth quarter was indeed more than 1.0 mb/d higher than a year earlier, though it averaged at or below levels of a year ago in the previous three quarters.

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