International Energy Agency Predicts Decline in Demand and Oil Price Falls
www.iea.org
The price of crude oil has significantly declined following a prediction from the International Energy Agency that the global downturn will reduce demand for oil this year. On Friday, the agency said that the demand for oil around the world will decline 2.4 million barrels per day. This will bring figures down to only 83.4 million barrels.
Light crude oil in the US declined to $48.98 per barrel, a $3.26 fall. Brent oil in London fell to $51.04, by $3.02. Since the record high $147 per barrel price for oil during last July, the prices have declined. The prices were also influenced by the major fall in trading on the Dow Jones industrial average. The figures fell by 112 points during the first hour of trading before they rebounded only slightly only to fall again by 68.89 points. This left the industrial average at only 8,014.4.
The International Energy Agency, which is based in Paris, said that their forecast for lower demand was derived from a growing opinion that oil and economic demand recovery won’t occur until 2010. The agency also noted that the oil inventories of developed countries rose in February to 61.6 days of cover, which is the highest it has been for 13 years.
Also this month, the Organisation for Economic Cooperation and Development significantly reduced their forecast for growth for developing economies. They now predict that gross domestic product for their 30 member nations will decline by 4.3%. In these 30 countries, the International Energy Agency forecasts that demand for oil will decrease by 4.9% compared to last year.
Find out more at: www.iea.org
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