IEA raises oil demand outlook on European, US growth

Global oil demand growth is expected to accelerate in 2014 on increased consumption from Europe and the United States, the International Energy Agency (IEA) said today.
The IEA, highlighting strongly growing demand in the United States as economic recovery takes hold, said that it was raising its estimate of the growth of global oil demand this year by 1.3 per cent to 145,000 barrels per day (bpd).
This meant it expected total demand to rise by 1.2 million barrels per day (mbd) overall in 2013 from the level in 2012.
That would take aggregate demand this year to 91.2 mbd, and this would rise by 1.2 mbd in 2014, to reach 92.4 mbd.

"A protracted period of steep decline in European oil demand eased back earlier this year and in some instances even reversed as the euro zone emerged from the claws of recession," said the IEA.
Average demand growth for the continent stands at a growth of about 175,000 bpd, reversing a previous decline rate of 530,000 bpd.

Sharply higher US demand is also expected to put up global consumption, noted the IEA.
"It is now thought that US oil demand averaged nearly 19,100 bpd in September, up 0.9 mbpd year on year," said the agency.
"This would be the fastest pace of growth experienced in nearly 10 years, and even longer if growth is measured in percentage terms.