World oil use in 2009 to fall by most since 1982: IEA

LONDON (Reuters) – World oil demand will contract this year by the most since 1982 due to extreme weakness in the global economy, the International Energy Agency (IEA) said on Wednesday.

The Paris-based agency also said supply will be lower than previously expected this year, risking a new price surge when demand recovers which could disrupt the world economy.

Global demand is expected to fall by 980,000 barrels per day (bpd) to 84.7 million bpd in 2009, the IEA said in its monthly oil report. Its forecast last month was for demand to contract by 500,000 bpd.

The forecast adds to evidence that the financial crisis is sharply eroding fuel use. The IEA, which advises 28 industrialized countries, said the latest reduction to demand may not be the last.

“The bottom line is that 2009 looks like a pretty weak year,” David Fyfe, head of the IEA’s Oil Industry and Markets Division, told Reuters.

Reuters