Paris-based International Energy Agency on Friday cautioned that world oil demand faces significant downside risk from fears that the economic recovery underway may stall. In its latest monthly oil market report, the agency maintained its global oil demand forecast for 2010 and 2011 almost unchanged. The IEA projects global oil demand of 86.6 million barrels per day for 2010, up 1.9 million barrels per day from the previous year. For 2011, demand is estimated at 87.9 million barrels per day, up 1.3 million barrels per day.
IEA also highlighted the recent soft patch in oil prices due to abounding oil stockpiles and fears of a setback to global economic growth. Prices averaged $77 barrels per day in August.
At the same time, global oil supply also fell in August, declining by 250 kilo barrels per day to 86.6 million barrels per day due to a drop in non-OPEC supply, as Canada, the U.K. and Russia embarked on seasonal maintenances. IEA is slightly more optimistic about supplies from non-OPEC nations in 2010 and 2011, even while remaining cautious of supplies from the Gulf of Mexico region being disrupted by Atlantic storms.
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