(MENAFN- Kuwait News Agency (KUNA)) Global oil demand has been firming in the fourth quarter of 2012 and will expand more quickly than expected next year, but growth will still be "tepid" due to the slowdown in the economies of the industrialised nations, the International Energy Agency (IEA) said Wednesday.
World oil demand in the fourth quarter is now pegged at 90.5 million barrels per day (mb/d), around 435,000 b/d higher than IEA forecasts in the Oil Market Report (OMR) in November.
Average annual demand this year is now evaluated at 89.7 mb/d, up 70,000 bbls on earlier estimates.
Similarly in 2013, demand is forecast to be stronger than previously projected, rising 865,000 b/d to 90.5 mb/d, which is 110,000 b/d more than the IEA was predicting in November.
The Paris-based agency attributed the revisions mainly to better data coming from five of the ten top oil consumers in the OECD area, which comprises 34 of the world's most industrialised countries.
The IEA noted that despite regional tensions in the Middle East and political risks linked with Syria and Iran, in particular, oil prices extended earlier declines in November and this was due to "persistent concerns about the economy and the looming US fiscal cliff." Early December prices put Brent at USD 107.85 per barrel and WTI at USD 85.
90 per barrel.
OPEC output was slightly higher at 31.22 mb/d in November, while Non-OPEC supply rose by 0.7 mb/d to 54 mb/d. Non-OPEC producers are expected to further increase output in 2013 to reach 54.2 m/d, the highest growth rate since 2010. Meanwhile, OECD stocks grew by 16.2 million barrels in October to reach 2.
722 billion barrels, or forward coverage of 59.1 days. Further draw down is expected to be recorded for November.
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