IEA expects world oil demand to grow after 2009
Azerbaijan, Baku, June 29 / Trend , A. Badalova/
The International Energy Agency says world oil demand will grow 0.4-1.4 percent after 2009 depending on rate of recovery of economy and GDP growth rate.
"The world financial crisis has had an enormous impact on oil and gas sector," EIA Director Nobuo Tanaka said in Paris while reading out the IEA report on the midterm review of the oil and gas market.
Tanaka said collapse of world oil demand in 2008-2009 reflects the worst economic recession in the last 50 years.
According to optimistic IEA scenario, global oil demand will be 89 million barrels a day by 2014, 4 million barrels a day above demand than in the low scenario.
With regard to oil prices, IEA expects oil prices to rise as soon as growth rate of world economy resumes.
World oil output will increase four million barrels a day from 2008 to 2014. During this period, according to IEA projections, the total non-OPEC supply will amount to 50-51 million barrels a day.
The IEA report said regarding the gas market that weak demand an equal footing with the low prices could undermine future investment. "Project managers will face financial problems and increasing uncertainty about the timing and rate of recovery of world economy, and as a result, world demand for gas," the EIA report said.
The suspension of investment in manufacturing, infrastructure and supplies can cause the risk of the medium pressure in the markets after the recovery in demand, according to the IEA expectations.
Following growth of one percent in 2008, gas demand in the Organization for Economic Cooperation and Development (OECD) fell by 4 per cent in the first quarter of 2009 and it will fall further according to the IEA expectations.
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