Global oil demand seen stronger than expected

Global oil demand seen stronger than expected

Paris: The International Energy Agency (IEA) raised its forecast Wednesday for global oil demand this year and next following new data showing stronger-than-expected economic growth, especially in rich developed economies.

The Paris-based energy watchdog says global demand for crude will reach 86.9 million barrels a day this year, up from its forecast last month of 86.6 million barrels a day.

The IEA said in its monthly report that oil demand next year will reach 88.2 million barrels a day, up from its forecast last month of 87.9 million barrels a day, based on the latest economic forecast from the International Monetary Fund (IMF) earlier this month.

The IEA, the energy arm of the Organization for Economic Cooperation and Development (OECD), a grouping of the world’s richest nations, said rich world oil demand will rise 0.7% this year to 45.8 million barrels a day, while growth in non-OECD countries will rise 4.7% to 41.2 million barrels a day.

Next year, rich world oil demand will resume its long-term decline, the IEA said, falling 0.6%, while non-OECD demand will continue to rise, growing 3.7%.

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