World oil consumption will grow less quickly than expected this year and next, the International Energy Agency (IEA) said Wednesday, as the pace of economic growth slows.
Demand will expand by 1.25 million barrels per day (bpd) next year, the Paris-based adviser to 28 industrialised countries said in a monthly report, 160,000 bpd less than previously expected.
The Organization of the Petroleum Exporting Countries also lowered its oil demand estimates on Tuesday. The last of the three most closely watched oil forecasts from government agencies, the U.S. Energy Information Administration’s monthly report, is due for release later on Wednesday.
The IEA also raised further its forecast for Libyan crude oil production capacity by the end of this year.
Weaker than expected third-quarter figures outside the developed economies of the Organization for Economic Cooperation and Development (OECD) and a lower global economic growth assumption underpinned the cut in demand, the IEA said.
Stronger than expected figures from the OECD, mainly Europe and the Pacific region, provided offsetting support.
Oil demand in Europe rose by 0.3 percent in August, the IEA said. Some of the increase may have been due to consumers filling their heating oil tanks before winter.
