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IEA trims estimate for 2014 global oil demand

Global consumption will increase by 1.1 million barrels a day, or 1.2 per cent, to 92 million next year, the Paris-based adviser to energy-consuming nations said in its monthly market report on Friday. The expansion is 100,000 barrels a day less than last month, when the estimate for 2014 was first introduced. Refinery operating rates will ease after a record surge in July, the IEA said.

“Everyone knows that supply is growing faster than demand into next year and the overall perception is that prices will soften,” Bjarne Schieldrop, chief commodity analyst at SEB in Oslo, said by phone before the report.

“We’re not really finding a big bullish driver for oil,” Schieldrop added.

Brent crude lost about four per cent this year, trading near $107 a barrel today on the ICE Futures Europe exchange in London, amid deceleration in China and elevated unemployment rates in the US and Europe.

The IEA’s outlook incorporates lower projections from the Washington-based International Monetary Fund, which on July 9 cut global economic growth forecasts next year to 3.1 per cent from 3.3 per cent. — Bloomberg