IEA Lowers Forecast

The IEA Oil Market Report lowers the outlook for  demand in 2011 and  2012.

"Global oil demand is revised down by 0.2 mb/d for 2011 and by 0.4 mb/d for 2012 on lower non-OECD readings and reduced economic growth expectations. Global GDP growth is now seen at 3.9% in 2011 and at 4.2% in 2012 with significant downside risks. Demand estimates now stand at 89.3 mb/d in 2011 (+1.0 mb/d y-o-y) and 90.7 mb/d in 2012 (+1.4 mb/d y‑o‑y)."

Given the potential for future World GDP downward revisions from 3.9% 2011, and especially 4.2% in 2012,  oil demand will also likely be subject to downward revisions.

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