NEW YORK (Commodity Online): The International Energy Agency (IEA) has cut the global oil demand growth outlook for 2012. In its new monthly report, the agency forecasts that oil consumption will increase by 800,000 barrels per day (bpd) against 1.1 million previously forecasted.
Oil consumption in the developed world, especially Europe, will fall this year as the region's debt crisis continue to slow economic growth. With regard to EU's sanctions on Iran oil, the report says that “New international sanctions targeting Iran’s oil exports do not take effect until 1 July, but several European customers have already curtailed imports of Iranian crude and Asian buyers are also moving to line-up alternative supplies”
The Organisation of Petroleum Exporting Countries (OPEC) has also cut back on its oil demand forecast for the year. Oil consumption is expected to grow to 88.76 million barrels per day with demand growth slowing to 900,000 bpd from 1 million bpd in 2011.
“Downside risks prevail. Worries about the U.S. economy along with EU debt concerns are adding to the uncertainties impacting world oil consumption this year”, it said in a report
