The International Energy Agency (IEA) lowered its projection for global oil demand
growth in 2011, falling by 190,000 bpd, or 0.2%, from an
In its May Oil Market Report, the IEA
attributed the reduction to persistent high prices and weaker
GDP (gross domestic product) projection for advanced
Global demand was pegged at 89.2mn bpd, down from a projection earlier in the year of
89.39mn bpd. Refinery crude run estimates were
also revised down due to significantly lower April runs in
North America and Europe, the agency said.
However, oil demand is still 1.5% higher than the 87.9mn bpd
averaged in 2010.
The IEA also cited tightening oil supply, particularly
with Libyan supply shuttered in the wake of the worsening civil
OECD industry stocks also dropped as seasonal refinery maintenance substantially reduced
product stocks, the IEA said.