| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Follow Finfacts on Twitter

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

News : Global Economy Last Updated: Nov 13, 2012 - 3:39 PM

International Energy Agency cuts oil demand forecast
By Finfacts Team
Nov 13, 2012 - 3:37 PM

Email this article
 Printer friendly page

The International Energy Agency Tuesday cut its forecast for oil demand in the last quarter of this year and said the state of the global economy will limit consumption expansion in 2013.

In its monthly market report, the Paris-based energy watchdog for 28 industrialised nations including Ireland, downgraded its forecast for global oil demand by 290,000 barrels a day to 90.1m barrels a day as a result of economic weakness in Europe and the fallout from recent Hurricane Sandy in the US.

For 2012 as a whole, the IEA now estimates average daily demand at 89.6m barrels, slightly above the 88.9m barrels demand in 2011.

The Organisation of the Petroleum Exporting Countries (OPEC), the producers' cartel, last week cut its demand forecast for next year by about 20,000 barrels a day to 89.57m barrels a day (b/d ), saying that "the economy is placing a considerable amount of uncertainty on the world oil demand forecast."

Including Tuesday's adjustment, the IEA has cut its estimates for fourth-quarter demand by 850,000 barrels a day over the past five months.

Demand next year would increase by 870,000 b/d to a total of 90.4m b/d - - 100,000 b/d less than in last month’s forecast.

Global oil supply rose by 800,000 b/d in October, to 90.9m b/d. The IEA said there was a slight fall in supplies from OPEC, the producers’ group, but that was offset by a rebound in the Americas and the North Sea. Iranian production rose a little last month, reversing a seven-month downtrend.

The IEA said Monday that the US will overtake Saudi Arabia as the world's largest oil producer by 2020 due to a boom in shale oil.

US oil production peaked in 1970 at slightly more than 9.63m barrels a day. Except for a modest recovery to fewer than 9m barrels a day in 1985, US crude production had been on a sharp decline until 2008, when it bottomed out at 5m barrels a day. By 2015, US oil production is expected to rise to 10m barrels per day and increase to 11.1m barrels per day by 2020.

Brent crude for December delivery is down $1.02 to $108.05 while Nymex crude is at $85.35, down 22 cents.

Highlights of the latest OMR (Oil Market Report)
dated: 13 November 2012

Oil futures prices fell to four-month lows in late October and early November amid mounting pessimism over the global economic outlook. Prices fell further after the US presidential election on worries over the so-called US ‘fiscal cliff’ looming at end-year, with Brent last trading at $109.25/bbl and WTI at $86/bbl.

The forecast of 4Q12 global oil demand has been cut by 290 kb/d since last month’s report, to 90.1 mb/d, reflecting persistent weakness in Europe and the impact of Hurricane Sandy in the US. The 2012 growth forecast has been reduced by 60 kb/d to 670 kb/d.

Non-OPEC production rebounded by 840 kb/d in October, to 53.4 mb/d, after seasonal maintenance and weather disrupted output in September. Non-OPEC supplies are expected to grow by 460 kb/d in 2012 and by 860 kb/d in 2013, to 54.1 mb/d.

OPEC crude oil supply dipped by 30 kb/d to 31.15 mb/d in October, a nine-month low, even as Iran halted a seven-month supply downtrend with a small rebound. The 'call on OPEC crude and stock change' for 4Q12 has been lowered by 500 kb/d, to 30 mb/d, due to a weaker demand outlook and a stronger forecast of non-OPEC supply.

September OECD total oil commercial inventories increased by a steep, counter-seasonal 15.2 mb in September, extending six months of builds, to 2 746 mb. Forward demand cover stood at 59.6 days, flat with an upwardly revised August estimate. Preliminary data indicate OECD oil stocks rose by 5.5 mb in October.

Global refinery throughputs averaged 75.9 mb/d in 3Q12, as recovering Chinese runs and strong OECD margins, notably in Europe, offset US hurricane outages. A seasonal dip is expected to leave 4Q12 runs at 75.5 mb/d. Annual growth is projected to rise to 1.1 mb/d in 4Q12 from 0.6 mb/d in 3Q12.

Check out our subscription service, Finfacts Premium , at a low annual charge of €25 - - if you are a regular user of Finfacts, 50 euro cent a week is hardly a huge ask to support the service.

Related Articles
Related Articles

© Copyright 2011 by Finfacts.com

Top of Page

Global Economy
Latest Headlines
Strong Swiss franc gloom deepens for exporters
Global investors shift focus to China; EM outflows surge to $1tn in 13 months
Global oil glut will continue into 2016
Stable growth momentum in OECD area but slowing expected in China
Prices for major food commodities in July lowest since September 2009
Global manufacturing in July weakest level in two years
US, China and UK lead top 25 target countries for foreign direct investment
Budget surpluses rare in developed countries from 1980s; Italy, France, Greece had none in 60 and 40 years
Singapore, London and Shanghai top cities for new FDI projects in 2014; Dublin in 11th place
Exchange rates shuffle as Dublin ranked 49th most expensive city; Paris at 46; Berlin at 105
Western consumer groups under pressure in China and India
Developing countries facing “structural slowdown” likely to last for years
OECD BEPS Tax Project: Amazon books UK sales in UK; Australia proposes up to 100% in penalties
Emerging Markets Index falls to 12-month low in May as manufacturing contracts
US and world economies slowing in 2015 — OECD
Global manufacturing production rose slightly in May; Trade flows weak
GDP growth in OECD area slowed to 0.3% in the first quarter of 2015
Only one quarter of workers worldwide have stable employment contracts
Automatic Exchange of Tax Information: OECD says countries won't be able to game system
Gates Foundation loses in Swiss family's shares coup
Minimum wage levels in OECD countries
Brent oil benchmark over $68 a barrel - up almost 50% in 2015
Global growth slows and manufacturing dips to 21-month low
Family-controlled firms dominate European business
Top 10 of world’s 250 largest consumer products companies account for 30% of sales
Nine of world's 20 fastest growing economies in Africa
Globalisation maybe stalling as trade growth remains weak
Global growth prospects uneven across major economies says IMF
Emerging markets growth lowest since 2009; Global growth at 30-year average
China's economic rebalancing hitting Latin American economies
New York, London, HK & Singapore top global financial centres index; Dublin recovers
Global growth in modest expansion from low oil prices/ monetary easing says OECD
Composite leading indicators point to positive change in growth momentum in the Eurozone
Global labour market trends portend paradise for some but uncertainty for many workers
Vienna remains top of World Quality of Living Rankings in 2015; Dublin at 34
Zurich and Geneva overtake Singapore to become world's most expensive cities
HSBC Switzerland and Falciani: How it happened
Global economic power to continue shift from advanced economies
Global food price index falls in January; Cereal output set for record
Global debt has risen $57tn or 17% of world GDP since 2007