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IEA sees oil demand up 0.6 pct a year through 2014

IEA sees oil demand up 0.6 pct a year through 2014

World oil demand is likely to grow by an average of 0.6 percent annually over the 2008-2014 period, the International Energy Agency forecast Monday, revising its mid-term expectations downward amid the global recession.
The Paris-based IEA, which advises oil-consuming countries, said oil demand would reach 89 million barrels a day by 2014 under the International Monetary Fund's current forecast of a return to 5 percent annual economic growth by 2012.
The IEA made the forecast in its medium-term oil market outlook report. It said that under a lower GDP scenario, oil demand would contract by 0.2 percent annually on average to 84.9 million barrels a day.
The lower growth forecast "assumes any rebound in the global economy will be slower and attain lower trend growth than the IMF projection," the IEA said.
The use of two growth scenarios "acknowledges the widespread uncertainty over the recovery path likely to emerge from the worst global economic recession in half a century," the IEA said.
A year ago, the IEA said the world's estimated daily oil needs would rise to 94.14 million barrels in 2013. That, too, was a downgrade to its previous year's medium-term estimate and was due to skyrocketing oil prices.
Prices later plunged and are today about half what they were a year ago.
Oil prices hovered above $69 a barrel Monday in Europe as traders look to macroeconomic indicators this week for signs of improvement in the U.S. economy. Benchmark crude for August delivery rose 26 cents to $69.42 a barrel by morning European time in electronic trading on the New York Mercantile Exchange.