The International Energy Agency trimmed its global oil demand growth forecast for this year, citing slower economic growth.
The IEA, in its monthly Oil Market Report released Friday, revised down global oil product demand forecast by 0.30 million barrels per day (mbd) to 89.90 mbd as the economic growth rate has been reduced to 3.3 percent from 4.0 percent previously.
The Paris-based agency said that OPEC crude supply in January moved up by 30.90 mbd, highest level since October 2008, on a rapid recovery in supplies from Libya and sustained output from Saudi Arabia and the UAE.
On the inventory front, the IEA said OECD industry stocks dipped by 40.80 mb to 2,611 mb in December, or 57.20 days of forward demand and noted the inventory levels remained below the five-year average for a sixth consecutive month. However, based on preliminary data, the agency estimates a shallower-than-normal 11.4 mb build in OECD industry stocks.
Yesterday, the Organization of the Petroleum Exporting Countries trimmed its world oil demand growth forecast by 0.12 mbd to 0.90 mbd for 2012, citing recent economic setbacks.
Meanwhile, Light Sweet Crude Oil (WTI) futures for March delivery are slipping form their two-week high, shedding up $0.70 to $99.14 a barrel.
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