World oil demand to hit record high this year: IEA

Source: Reuters

(Reuters) - Global oil demand will hit a record high this year, the International Energy Agency (IEA) said on Tuesday, revising up consumption estimates as the world economy recovers from recession.

The Paris-based adviser to industrialized economies raised its forecast for world oil demand growth this year to 1.67 million barrels per day (bpd), up 100,000 bpd.

The agency said in its monthly Oil Market Report that world oil demand would reach an average of 86.60 million bpd this year, up from 84.93 million in 2009.

The previous record high for world oil demand was 86.5 million bpd in 2007 before the onset of the global financial crisis and economic slowdown.

"There are signs of oil demand picking up in North America and the Pacific, Asia and the Middle East although consumption in Europe still looks weak," David Fyfe, head of the IEA's Oil Industry and Markets Division, told Reuters.

Read more: http://www.reuters.com/article/idUSTRE63C1CV20100413

that were last seen before gas prices went to $4.00/gallon the first time, but at least now the traffic is mostly cars instead of monster trucks and SUVs. Oil demand here has likely stayed slightly lower.

However, the increased traffic likely indicates people are getting thoughtless about driving again, making multiple trips instead of combining everything into one trip.

The increased demand has got to be coming from industry. Whether or not that is a good sign remains to be seen.

http://www.businessweek.com/news/2010-04-13/crude-oil-falls-for-fifth-day-on-concern-market-is-oversupplied.html

"“We’re seeing a lot of (supply) growth out of the U.S., Russia and Canada, responding to high prices,” said Brad Samples, a commodity analyst for Summit Energy Inc. in Louisville, Kentucky. “Investments that were made leading up to 2008 are coming to fruition.”

" Countries outside the Organization of Petroleum Exporting Countries will raise output by 600,000 barrels a day this year to average 52 million barrels a day, the IEA said in its monthly market report today. That’s 220,000 barrels a day more than estimated last month. The agency’s global oil-demand forecast was 30,000 barrels a day higher than in last month’s report.

Non-OPEC producers pump about 60 percent of the world’s oil."

"U.S. gasoline demand slipped to an eight-week low last week as motorists reduced their driving after the three-day Easter weekend, MasterCard Inc. said today. Motorists bought an average 9.3 million barrels a day of gasoline in the week ended April 9, 3.6 percent below the prior week, the second-biggest credit card company said in its SpendingPulse report."

At least for the moment supply seems to be exceeding demand, but we all know that won't last forever.