THE International Energy Agency (IEA) has cut its world oil demand forecast for 2013 on continuing fragility in the world economy despite signs of recovery in China and the US.
The IEA said the marginal cut of 85,000 barrels a day was in line with the prospect for slower economic growth forecast by the International Monetary Fund, which last month cut its world growth estimate for 2013 to 3.5 per cent from 3.6 per cent.
The agency now forecasts oil demand of 90.7 million barrels a day, with the eurozone and Latin America accounting for much of the revisions.
"The reduction in the IMF economic outlook for Europe seems particularly ominous," the agency said in its monthly report on the world oil market, in part because of "the sheer size of the region's economic footprint".
Oil demand across Europe is now forecast to decline 260,00 bpd, or down 1.9 per cent, instead of 235,000 bpd lower as forecast earlier.
The IEA said world oil supply hit 12-month lows in January, down 100,000 bpd on a monthly basis to 30.34 mbd, despite higher production from Saudi Arabia and Kuwait.
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