2011 World,China Oil Demand To Slow;Plenty Of Capacity-IEA |
| Wall Street Journal - Jul 13, 2010 |
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.
It also said the Organization of Petroleum Exporting Countries would continue to have 5.5 million to 6 million barrels a day of back-up spare oil production capacity far into 2011 to offset any unexpected supply disruptions. Most of that ample capacity is held by Saudi Arabia, the world's biggest oil exporter.
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- Posted: 2010-07-13 09:37:50
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