IEA Improves Oil Demand Forecast For 2010

IEA Improves Oil Demand Forecast For 2010

http://online.wsj.com/article/SB124721368298522209.html

The International Energy Agency or IEA has raised its 2010 oil demand growth forecast from 1.4% to 1.7%. Citing increased consumption by China and other nations, the Paris based agency said the oil demand is projected to grow to 85.2 million barrels per day in 2010. Despite the growth in demand the 2010 projected level is at par only with the consumption levels of 2006 indicating the extent of the recessionary trends. Continued high levels of unemployment and expectations of a delayed recovery have dampened oil prices which have fallen from the last week’s high of $73 per barrel to just $60 per barrel. Although the oil scenario is expected to remain weak this year, things are likely to improve next year, the IEA has said.