UPDATE 2-U.S. EIA lowers 2009 world oil demand forecast

Tue Jan 13, 2009 7:11pm GMT
 
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By Ayesha Rascoe and Tom Doggett

WASHINGTON, Jan 13 (Reuters) - The U.S. Energy Information Administration on Tuesday again pared back its 2009 world oil demand forecast due to the global economic downturn, but predicted a slight recovery in consumption for next year.

World oil demand will drop by 810,000 barrels per day in 2009 compared with last year, down 200,000 bpd from its estimate in December, the EIA said in its monthly outlook.

"World oil consumption continues to be revised downward in response to the global economic downturn," the EIA said in its monthly short-term energy outlook.

The statistical wing of the Department of Energy first predicted last month that world oil consumption would contract for the first time since 1983 as the world economy slows to a near standstill.

"The EIA is acknowledging a further contraction in U.S. oil demand and while that seems to be no surprise with the economy now in recession, it points to 2009 as a challenging year," said Phil Flynn, an analyst with Alaron Trading in Chicago.

The EIA said it expected demand in the United States, the world's top consumer, to fall by 390,000 bpd in 2009, compared with 2008.

However, in its first predictions for 2010, the EIA said global demand could rise by 880,000 bpd to 85.98 million bpd, along with a modest rebound in the economy. [ID:nN13391201]  Continued...

 

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