{"id":6347,"date":"2013-07-11T19:25:59","date_gmt":"2013-07-11T19:25:59","guid":{"rendered":"http:\/\/disnaija.com\/nigeria-news\/iea-forecasts-higher-demand-for-oil-next-year\/"},"modified":"2013-07-11T19:25:59","modified_gmt":"2013-07-11T19:25:59","slug":"iea-forecasts-higher-demand-for-oil-next-year","status":"publish","type":"post","link":"https:\/\/disnaija.com\/iea-forecasts-higher-demand-for-oil-next-year\/","title":{"rendered":"IEA forecasts higher demand for oil next year"},"content":{"rendered":"
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Global economic recovery and emerging markets led by China will boost growth of oil demand to a record high total next year, the IEA forecast on Thursday.<\/p>\n

Next year, consumption by emerging markets will dominate demand overall, a position “they should hold in perpetuity”, the International Energy Agency said.<\/p>\n

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But the IEA monthly report stressed that the oil market is heading into a sea of “many uncertainties”, partly because oil production in the United States is “set to grow strongly”.<\/p>\n

Supply from other countries outside the Organization of Petroleum Exporting Countries (OPEC), notably Brazil, Kazakhstan and South Sudan, would also rise and was set for a 20-year record, the agency forecast.<\/p>\n

For this year, because unseasonally cold weather had caused a big increase in demand for heating oil in the northern hemisphere in the second quarter, the agency raised its estimate for global demand by 215,000 barrels per day (bd).<\/p>\n

This took the overall estimated annual growth to 930,000 bd, and total consumption to 90.8 million barrels per day (mbd).<\/p>\n

The IEA estimates show demand rising by a further 1.2 mbd next year to 92.0 million barrels per day, a new record after record demand also this year.<\/p>\n

In London, the price of benchmark West Texas Intermediate oil fell 24 cents from the closing price on Wednesday to $ 106.28, partly in response to the report but also due to comments on monetary policy from the US Federal Reserve and a bullish outlook for US fuel stocks, traders said. The price is at a 15-month high point, however.<\/p>\n

Regarding supply, “upheaval in the Middle East and North Africa remains an overarching concern,” the IEA warned.<\/p>\n

“Emerging markets and developing economies are forecast to lead demand growth in 2014,” the IEA said.<\/p>\n

The growth of demand from countries outside the 34-member OECD had slowed “from the heady pace of recent years” but would “climb above total OECD demand in the second quarter of 2014,” the agency said.<\/p>\n

Recently, the speed of expansion had slowed most in China, India and the Middle East, but demand by China would still lead consumption by emerging markets, the agency said.<\/p>\n

The IEA said that the United States would play a role in “an expected steep increase in global refining activity in the third quarter of 2013″.<\/p>\n

This was part of “tectonic shifts in the mid-stream and down-stream industries.”<\/p>\n

Analysts at PVM oil brokers in London commented that the IEA report “reveals that the US shale oil boom will represent a significant growth of non-OPEC supply in 2014.”<\/p>\n

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