IEA cuts 2011 oil demand growth estimate, ups 2010

Wednesday, 13 October 2010 21:42 - - {{hitsCtrl.values.hits}}

LONDON, (Reuters) - Global oil demand growth is expected to accelerate for the rest of this year but is revised lower for 2011 and could slow if the world economy disappoints, the International Energy Agency (IEA) said on Wednesday.

Global oil demand next year will still be higher at 88.16 million barrels per day (bpd) compared with 86.94 million bpd this year, but the rate of growth will slow.

“The market should remain pretty well supplied at least until the middle of next year,” said David Fyfe, head of the IEA’s oil industry and markets division, adding that a lower growth scenario would trim demand considerably and leave supplies comfortable for the whole of 2011.

“This looks like a last hoorah for demand in north America. We are still working on the basis that OECD oil demand will re-enter decline from next year,” he said in reference to countries in the Organisation for Economic Co-operation and Development.

The IEA revised its 2011 year-on-year growth forecast down by 60,000 bpd to 1.21 million bpd from its previous report but revised up its 2010 demand growth forecast by 260,000 bpd.

Oil climbs atop $82 as China crude imports jump

LONDON (Reuters) - Oil rose past $82 on Wednesday after China's crude imports jumped last month, while a weaker dollar and expectations of further policy easing in the United States burnished the appeal of commodities for investors.

U.S. crude for November rose $1 to $82.67 by 0819 GMT (4:19 a.m. EDT), leaving it less than $2 from a five-month high above $84 reached last week. November ICE Brent gained 84 cents to $84.34.

Price support came from data showing that China, which the International Energy Agency said on Tuesday has overtaken the U.S. as the world's largest energy consumer, saw a record 35 percent increase in September crude oil imports from a year earlier.