Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

Media accused of pro-protester bias in Ferguson

Read more

DEBATE

The Murderous Lure of Jihad: Tackiling ISIS and its Worldwide Recruitment (part 2)

Read more

DEBATE

The Murderous Lure of Jihad: Tackiling ISIS and its Worldwide Recruitment

Read more

FOCUS

Republicans block Obama's bid to hike minimum wage

Read more

WEB NEWS

Calls for ISIS media blackout after execution of James Foley

Read more

WEB NEWS

Web users divided over Darren Wilson

Read more

WEB NEWS

Web users take on 'Ice Bucket Challenge' to fight ALS

Read more

ENCORE!

From Paris's Liberation to 'arresting' art in Avignon

Read more

INSIDE THE AMERICAS

Ferguson riots: Pressure mounts on Obama

Read more

  • Two US Ebola patients leave hospital ‘virus-free’

    Read more

  • Hollande is ‘nobody’s president’ says former French minister

    Read more

  • Turkey’s Erdogan names foreign minister Davutoglu as next PM

    Read more

  • US reaches historic $16.7bn settlement with Bank of America

    Read more

  • Special report: Supplying Ukraine’s soldiers on the front line

    Read more

  • US forces tried to rescue slain reporter from IS captors

    Read more

  • Israeli air strike kills three top Hamas commanders

    Read more

  • France delivered arms to Syrian rebels, Hollande confirms

    Read more

  • Tensions high in Yemen as Shiite rebel deadline looms

    Read more

  • Interactive: Relive the Liberation of Paris in WWII

    Read more

  • French village rallies behind besieged elderly British couple

    Read more

  • Former Irish PM Albert Reynolds dies at 81

    Read more

  • Former Femen activist detained after fighting veiled woman

    Read more

  • Thailand coup leader Prayuth Chan-ocha voted prime minister

    Read more

  • Brazil’s Silva launches bid after Campos plane crash death

    Read more

  • Brutal IS beheading video sparks social media pushback

    Read more

  • US attorney general visits Missouri town after fatal shooting

    Read more

Middle east Business

IEA predicts a historic contraction in oil demand

Latest update : 2009-01-16

According to the International Energy Agency, oil demand in 2009 should shrink for the second year in a row, for the first time since 1982-1983. In 2008, it fell 0.3%, and the IEA foresees a decline of 0.6% this year.

AFP - The International Energy Agency on Friday cut its oil demand forecasts due to a much sharper-than-expected economic slowdown, with the market facing its first two-year contraction since 1982 and 1983.
  
The IEA said it wanted to anticipate sharp downward revisions to global economic growth forecasts and so had halved its own estimate to just 1.2 percent "given the worsening outlook."
  
Accordingly, it cut its projection for 2009 oil demand by one million barrels per day (bpd) to 85.3 million bpd, representing a fall of 0.6 percent from revised 2008 figures.
  
For 2008, the IEA put global oil demand at 85.8 million bpd, down 0.3 percent, adding that "the expected two-year contraction in oil demand would be the first since 1982 and 1983."
  
In a regular monthly report, the IEA noted that OPEC output in December was down one million bpd from September and down nearly two million bpd from mid-2008 highs when oil hit record highs above 147 dollars per barrel.
  
The New York oil contract Friday was trading around 35 dollars, holding at multi-year lows on fears that the global slump, especially in the United States, the world's biggest energy consumer, will undercut demand.
  
OPEC, which has cut output 4.2 million bpd over recent months in a bid to support prices, on Thursday warned that global oil demand would contract by a more-than-expected 0.2 percent this year in light of the economic crisis.
  
"The depressed world economy is expected to have a large impact on oil demand this year," especially in industrialised countries, the Organization of the Petroleum Exporting Countries said in a monthly report.
  
"The year 2009 started with a very depressed world economy which caused the year's oil demand forecast to show negative growth" of 0.18 million barrels per day (bpd) or 0.2 percent, OPEC said.
  
In 2008, global oil demand was estimated to have contracted by 0.1 million bpd, "the first decline in over two decades," it added.
  
OPEC pumps about 40 percent of the world's oil.

Date created : 2009-01-16

COMMENT(S)