European Drop to Keep Global Demand for Oil in Check
2013 is expected to be the third consecutive year of weak growth in global oil demand, according to the International Energy Agency's (IEA) April Oil Market Report, a summary of which was released today.
The IEA highlighted what it anticipates will be the sharpest drop in European demand since 1985.
Worldwide, the IEA expects demand to increase by just 795,000 barrels per day (bpd) in 2013. Countries outside the Organisation for Economic Co-operation and Development are predicted to drive growth with an additional 1.28 million-bpd demand, but a 480,000-bpd drop in OECD consumption will offset almost 40% of that gain in demand. In Europe, demand is expected to drop by 340,000 bpd, the weakest level since 1985.
On the other side of demand, the IEA expects non-OPEC supplies to increase 1.1 million bpd, driven largely by renewed exports from South Sudan. Although the IEA's press release does not list 2013 expectations for OPEC oil supplies, it does note that March supplies dropped 140,000 bpd due to disruptions in Nigeria, Libya, and Iraq.
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