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IEA sees oil supply crunch risk recede
PARIS
Petroleumworld.com, June 29, 2009The IEA saw the risk of oil supply strains recede to 2013 at the earliest with demand growing sluggishly as many economies recovered only slowly from recession, in a report on Monday.
The International Energy Agency (IEA) said in its Mid-Term Oil Market Report that world oil demand would rise by an average 0.6 percent a year in 2008-2014, sharply less than the 1.6 percent forecast in its 2008 mid-term report.
"Relative to the medium term profiles presented in previous years, this scenario paints a delayed picture of threatened 'supply crunch' later in the projected period," it said.
The IEA, the energy-monitoring arm of the 30-nation Organization for Economic Cooperation and Development, had warned in April that oversupply of oil was crimping investment in new fields for the day when demand recovers.
It said in Monday's report that although weak demand could hold off a crunch, tighter supply forecasts for 2013 and 2014 raised the prospect of an "increasingly volatile" market in that period.
But the agency said that the economic outlook was uncertain and that according to an alternative growth model, yearly average demand could actually decline over the next few years if economic recovery took longer than forecast.
Story from AFP
AFP 06/29/2009 10:01
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