The International Energy Agency trimmed its global oil demand forecast for the year 2013 citing sluggish economic growth.
The IEA, in its monthly Oil Market Report released today, nudged down its 2013 oil demand growth forecast by 0.40 million barrels per day (mbd) to 90.50 mbd from the earlier 90.90 mbd, on weaker economic growth assumptions. For the year 2012, the IEA now forecasts oil demand growth of 0.90 mbd to 89.60 mbd.
Commenting on the supply, the agency said global oil supply grew by 0.3 mbd month-over-month to 90.7 mbd in July, with non-OPEC contributing 60 percent of the increase. Meanwhile, OPEC crude supply fell 70,000 bd to 31.39 mbd in July versus June, mainly due to declines from Iran, Angola and Libya, the agency added.
On the inventory front, the IEA said OECD industry stocks fell counter-seasonally by 5.50 mb to 2,683 mb in June and forward demand cover fell to 57.8 days from 58.9 days. The deficit to the five-year average stock level widened to 19.2 mb, while July preliminary data suggest a 10.0 mb build in OECD stocks, the agency noted.
Thursday, the Organization of the Petroleum Exporting Countries maintained its 2012 world oil demand growth forecast at 0.90 mbd and said the summer driving season, the summer heat, and the continued shutdown of most of Japan's nuclear capacity supported demand growth...
On the oil price movements, the agency said, oil prices advanced in July and early August, extending earlier gains as the EU embargoon Iranian oil took effect.
Meanwhile, Light Sweet Crude Oil (WTI) futures for September delivery are losing $0.85 to $92.51 a barrel.
by RTT Staff Writer
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