Jason Barton

Professional Information and Energy News

World,China Oil Demand To Slow;Plenty Of Capacity-IEA

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This is great news, unless it drives shortsightedness in investors and researchers who would otherwise drive innovation.

  • JULY 13, 2010, 4:54 A.M. ET

UPDATE:2011 World,China Oil Demand To Slow;Plenty Of Capacity-IEA

 
   By Spencer Swartz 
   Of DOW JONES NEWSWIRES

LONDON–The International Energy Agency said Tuesday it expects oil demand to slow next year in China and most other parts of the world, indicating that crude prices are likely to trade at subdued levels well into next year.

In its first assessment of 2011 global oil trends, the Paris-based agency forecast world oil demand to grow by 1.3 million barrels a day, or 1.6%. That increase rate is below the 2.1% rise in global crude consumption expected this year, although it is in line with 1.7% growth seen on average annually from 2000 to 2007.

Despite a higher rate of global economic growth projected next year, the IEA said the dual impact of improving energy efficiency in industrialized nations and a gradual phasing out of economic stimulus in emerging markets like China–the fastest-growing oil consumer globally–would slow the pace of oil consumption.

[…]

“Whisper it quietly, but we might, just might, be in for some market stability for a while longer,” the IEA said.

[…]

Consumers are still bent on maximizing energy efficiency in places like the U.S. and oil traders have lingering doubts about the health of Europe’s and America’s economic recovery and the knock-on effect in emerging markets.

[…]

There are some potential problems ahead. Non-OPEC oil supply is forecast to grow by just 400,000 barrels a day in 2011, half the growth rate expected this year and far below recent historical averages, due to aging oil fields.

Read the entire article here.