The International Energy Agency nudges down its global oil demand forecast for 2012, citing uncertainty over summer power sector oil demand and non-OECD stockpiling.
The IEA, in its monthly Oil Market Report released today, nudged down its 2012 oil demand growth forecast to 89.90 barrels per day (mbd) as a lower GDP sensitivity this month overshadows uncertainty over summer power sector oil demand.
The Paris-based agency said that OPEC supply edged lower in May, off 20,000 bd, to 31.87 mbd, with reduced output from Saudi Arabia and Iraq offsetting higher production in Angola, Nigeria and Libya.
Meanwhile, non-OPEC supply increased by 0.2 mbd to 53.1 mbd in May as rising North American supply more than offsets record-low North Sea output, as well as outages in the Sudans, Syria, and Yemen, the agency noted.
On the inventory front, the IEA said OECD industry stocks gained 17.30 mb to 2,643 mb in April, holding the total stocks above the five-year average for a second straight month.
Yesterday, the OPEC in its monthly oil market report maintained its world oil demand growth in 2012 at 0.9 mbd but cautioned that economic developments world-wide had placed a great amount of uncertainty on oil demand.
Meanwhile, Light Sweet Crude Oil (WTI) futures for July delivery are adding $0.38 to $83.70 a barrel.
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