Global oil demand for 2010 to be 'sluggish': IEA

Paris: The International Energy Agency said Friday that oil demand in the developed world for 2010 would be "sluggish" with all increases being accounted for by emerging markets. Consequently, all top oil producers will be switching larger supplies from OECD nations to these growth areas.

Image: NERC

The Paris-based agency revised downwards its forecast for world oil demand slightly, saying a big overhang in unused crude supplies was likely to persist if economic activity remained listless. It predicted a marginal growth in global oil consumption for 2010 - to 86.3 million barrels a day, up by 1.44 million barrels a day.

This was slightly down from 1.47 million barrels a day forecast in December 2009.

"Oil demand recovery in the OECD will likely remain sluggish," the IEA said in its monthly oil market report.

"Demand growth in 2010 derives entirely from outside the OECD," it added.

Much of this growth, according to the report, would come from Asian markets with Latin America and the former Soviet Union accounting for a portion.