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Oil demand to 'rise tentatively' in 2015: IEA

2014-10-16

Oil prices might have taken a tumble over the summer but demand is set to make a modest recovery in 2015 as the global economy improves, says the International Energy Agency (IEA).

Oil prices have seen dramatic declines in the last few months, with the price for Brent crude hitting a two-year low of $88.55 a barrel this week, on the back of an abundant supply and slowing orders in the U.S., China and Europe. However, the IEA believes that demand growth "may have touched bottom" and should steadily improve.

"Projections of oil demand growth for 2014‐15 have been reduced, but growth is still expected to gain momentum. Recent data suggest that may already have started to happen," the IEA said in its monthly report on Tuesday. It added that record‐high refinery throughputs in August and improved margins worldwide suggest demand is perhaps not currently "as dismal as it might appear."

The agency revised its forecasts for global oil demand for 2014 to 92.4 million barrels a day -- down 200,000 b/d from its September report -- on "reduced expectations of economic growth and the weak recent trend." more...


Source: CNBC