The International Energy Agency forecasts a marginal growth in demand for oil in 2013 as it continued to believe demand increase in China.
The IEA, in its monthly Oil Market Report released Friday, nudged up global oil demand projection to 90.8 million barrels per day (mbd) for 2013, which is 240,000 bd more than forecast last month. A raised fourth quarter 2012 demand estimate and heightened expectations for China are the main contributors to the hike, the agency said.
Commenting on the supply, the agency said global supplies fell by 170,000 bd in December, to 91.2 mbd, even as non-OPEC production rebounded by 90,000 bd from the prior month to 54.2 mbd.
On the inventory front, the IEA said OECD commercial oil stocks fell by 18.70 mb in November, led by a further drop of 11 mb in middle distillate stocks, extending earlier declines. December preliminary data point to a further 18.4 mb decline in OECD industry inventories. The agency pointed out that forward cover fell by 0.50 days 30 days in November.
On the oil price movements, the agency said oil prices were up in December gathering strength from seasonally stronger winter demand and geopolitical concerns.
Wednesday, the Organization of the Petroleum Exporting Countries held its 2013 world oil demand at 0.80 mbd and said the impact of economic turbulence on oil demand should be considerably milder than in previous years.
Meanwhile, Light Sweet Crude Oil (WTI) futures for February delivery are losing $0.22 to $95.27 a barrel.
by RTT Staff Writer
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