IEA revises upward 2009 global oil demand

• Source: Xinhua
• [09:06 June 12 2009]
• Comments

The International Energy Agency (IEA) on Thursday revised upward its estimate for global oil demand for the first time since last August, a move that indicates the worst of the global economic recession might have been over.

 According to the Paris-based agency, global oil demand in 2009 will be 83.3 million barrels a day, up 120,000 barrels a day from its previous forecast in May, yet still a 2.9-percent fall or 2.5 million barrels less a day compared with 2008.

 "These revisions do not necessarily imply the beginning of a global economic recovery, and may only signal the bottoming out of the recession," said the IEA in its June report.

 Based on data from 30 countries in the Organization for Economic Cooperation and Development (OECD), the IEA said that the new revision reflected "stronger-than-expected early-year OECD demand."

 According to the agency, the slight upward boost was led by major industrial economies, particularly the United States. A recent 20-dollar rise in the oil price and unexpectedly strong US consumption were some of the signals that recession may be receding. Overall data showed that the industrial demand was going up even though transportation and services sectors remained "very weak."

 The IEA said that Chinese demand rose by 6.5 percent on annual basis in April as a signal of "a partial industrial revival," but warned that some time "China could well find itself facing excess capacity, inventory draws, a rise in non-performing loans and even deflation."