IEA Lowers Global Oil Demand Forecast - Futures Firmer in Step With Early Stock Indicators
The International Energy Agency said on Tuesday that it has lowered its forecasts for global oil demand for 2011 and 2012 by 160,000 barrels a day and 200,000 barrels a day, respectively.
The agency cites the "more precarious economic backdrop" and weaker fourth-quarter data.
"Uncertain prospects for the single European currency continue to provide added downside risk to current economic growth estimates," the IEA said in its monthly oil report.
The agency now expects global oil demand to average 89.0 million barrels a day in 2011 and 90.3 million barrels a day in 2012.
Despite the lowered outlook, crude futures trading appears to be tracking firmer European stock trade and positive U.S. stock indications.
January crude futures are up 72 cents or 0.7% at $98.47 a barrel.
United States Oil Fund closed Monday down 1.6% at 37.88.
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