(MENAFN - Kuwait News Agency (KUNA)) Because of flagging, global economies, particularly in Europe, the International Energy Agency (IEA) on Tuesday shaved almost 300, 000 barrels per day (b/d) off its forecast for oil demand in 2012, pitching that level now at 90.1 million b/d.
The latest monthly "Oil Market Report" said that "mounting pessimism" over the state of the world economy was weighing on markets and pushing oil prices lower in anticipation of weakening demand.
The IEA noted that despite a number of supply disruptions, including the devastation of hurricane Sandy, there was little or no upward pressure on prices. On the contrary there was a drop on average crude prices and a "counter-seasonal" build of stocks in the industrialised countries.
But the IEA warned against "complacency" over this trend and reiterated the risks of market conditions today.
"Relatively benign price outcomes should not be cause for complacency," the OMR cautioned.
"Growing reliance on international trade for product supply is spreading oil supply risk from the upstream to the downstream," it noted in reference to the crimping of gasoline supplies as a result of hurricane Sandy and other factors.
On the global demand side, the Agency said it had reduced growth forecast for the fourth quarter of 2012 by 850,000 b/d since June and the "call on OPEC crude" would decline by 500,000 b/d in the current quarter.
OPEC production dipped 30,000 b/d in October to 53.4 mb/d, while non-OPEC production is forecast to rise this year by 460,000 b/d to 54.1 mb/d.
Despite supply disruptions, industrialised countries in the OECD area rebuilt inventories at a fast pace, adding 15.2 million barrels to stocks, which now stand at 2.75 billion barrels, or forward demand of almost 60 days.