Oil demands to decline again in 09, IEA report predicts

According to a report worldwide oil demands will fall again during this year and it would be the first successive yearly declines in the past 26 years.

The International Energy Agency says that during this year, there will be an average 941, 0000 barrels per day decline in global oil demand.

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IEA serves as the representative of the major oil consuming nations and it says that the said decline in oil demand is expected because of worldwide economic slowdown that seems to last throughout this year.

The report says that during the current year there will be 1.2% growth in worldwide economy that is nearly 50% of its previous estimate.

Previously, the agency has predicted that worldwide oil consumption would recover a bit during 2009 because of increasing demand in the developing countries of the world.

The report also warns that the oil demand would be cool especially in China, where economic growth rate to reach at its weakest level during the past eight years.

This report has emerged after a month when cartel Opec oil producers announced a huge drop in output.

Rob Laughlin, who is an oil analyst at MF Global, London, says in this connection: “Worldwide oil demand is decreasing with an alarming rate.”

“This new IEA report is another warning for OPEC which shows that supplies are still outdoing demand and the things are getting bad to worse with every passing day.”

Oil demands to decline again in 09, IEA report predicts
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