World Oil Demand Will Be Lower Than Expected in 2011


World demand for oil will increase in the final months of 2010, but will be lower than expected in 2011, The International Energy Agency said.

The IEA cut its forecast for 2011 demand to 1.21 million barrels per day, from 1.27 million bpd, Reuters reported. The agency also increased its estimate for 2010 by 260,00 bpd, citing factors such as heating oil restocking.

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"The market should remain pretty well supplied at least until the middle of next year," said David Fyfe, head of the IEA's oil industry and markets division.

If world economic growth falters, that could impact world oil demand, the agency said.

"If the lower case GDP scenario materializes, that would trim demand quite dramatically and the market would look very well-supplied through 2011," Fyfe said.

Originally published