The West's energy agency said that Global oil demand will be sluggish throughout 2013 as economic expansion remains tepid also predicting comfortable oil supply levels which could alleviate oil price pressures on consumers.
The International Energy Agency said that global demand growth is expected to stay relatively sluggish through 2013 based on the continued assumption of tepid global economic expansion.
It forecast global oil demand growth for 2013 at 865,000 barrels per day, 110,000 barrels per day higher than in its previous report taking consumption up to an average of 90.5 million barrels per day.
The IEA said that on the supply front spectacular growth in US production on the back of a boom in shale oil which will be one of the top developments for the market in 2013. The US will contribute heavily to an aggregate non OPEC increase in output of 890,000 barrels per day to 54.2 million barrels per day in 2013.
Its forecast for demand for OPEC oil was unchanged for 2013 at 29.9 million barrels per day much higher than the group's current production of 31.22 million in November. However, that it did not expect OPEC ministers who are meeting in Vienna on Wednesday to decide on any production cuts but that they would probably roll over their current 30 million barrels per day target given relatively robust oil prices.
IEA said that leading up to the gathering the majority of ministers have signalled the status quo will be maintained despite production this year averaging 1.5 million barrels per day above the current target. Indeed, Brent futures prices are on track to surpass 2011 record levels this year buoyed by heightened political risks in key producing countries both in OPEC and non OPEC countries.
