IEA Sees Oil Supplies Barely Ahead of Demandadmin
Oil supplies will remain tight despite record prices that have trimmed demand, according to the International Energy Agency.
Downsizing its estimate of how much oil will reach the market, the IEA predicted supply will exceed projected demand only by 2 million barrels a day.
The IEA is the energy watchdog for the Organization for Economic Cooperation and Development, a grouping of the world’s most industrialized countries.
In its annual Medium Term Report, it said the world’s estimated daily oil needs will rise from 86.87 million barrels this year to 94.14 million barrels in 2013 — less than it anticipated last year, because of skyrocketing prices. The agency said there will be 1.4 percent less demand this year and 3.4 percent less in 2012, the last year for which the report gave figures.
As Western nations cut back on crude, China and other emerging economies will consume more, the IEA said.