IEA lowers estimate for 2011 oil demand growth

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 earlier estimate.

In its May Oil Market Report, the IEA attributed the reduction to persistent high prices and weaker GDP (gross domestic product) projection for advanced economies.

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 war.

OECD industry stocks also dropped as seasonal refinery maintenance substantially reduced product stocks, the IEA said.

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