Reduced demand forecasts affect oil prices
 14 May 2008
The decision by the International Energy Agency (IEA) to reduce its 2008 oil product demand forecast has caused oil prices to dip following record rises this month.
Oil product demand predictions for this year have been cut from 87.2 million barrels per day (bpd) to 86.8 million bpd, a fall of 390,000 bpd.
The Paris-based IEA, energy advisor to 27 oil-using nations, stated: "This report sees further downward adjustments to demand, and they may not be the last. Despite an aggressive cut last month in our US demand forecast, further downward revisions are needed this month."
According to the agency's May monthly report, demand will be weakened in 2008 by economic slowdown in industrialised nations, though demand in developing nations such as China and India will continue to rise sharply.
The IEA is urging oil producers' cartel Opec to increase oil production and investment in order to "halt the upward spiral in prices".
Oil prices have risen by around 12 per cent since the April IEA report and oil prices have doubled within just one year, rising by 20 per cent since the beginning of the year.
RSS newsfeed
Stay up to date with our RSS newsfeed with articles for all home heating oil users including market/price news and environmental issues.
 RSS newsfeed
Get your FREE instant online quote for home heating oil - we find the cheapest price in your area, saving you time, money and hassle!
More news:
News archive...
© Adfero Ltd
|
