Global Oil Demand Expected to be Low

October 12 00:00 2011

New York, October 12 ( – The global economy is in a persistent slowdown mode with no signs of recovery in the immediate future. Under the circumstances, IEA (International Energy Agency) anticipates a rather lackluster demand for oil during this period. Some leading oil producers like Saudi Arabia have already scaled back production in anticipation.

There has already been a dip of around 50,000 barrels a day in the global oil demand forecast made by the IEA over and above the downward revisions in oil demand that the agency has been making over the past few months. Oil demand in 2012 faces a drop of over 200,000 barrels per day as per estimates by IEA.

On the flip side, Chinese demand for oil is set to increase 5% which translates to a whopping  figure of nearly half a million barrels per day. This will be the silver lining in the otherwise, dim scenario as far as global oil demand is concerned.

At the same time, Libyan stabilization is expected to trigger oil production levels in that country to over half a million barrels per day. This critical balance could receive a jolt if speculation about certain OPEC members urging fellow oil producers to scale back production comes true.