The International Energy Agency (IEA) is unlikely to reduce its oil demand forecast in its next report, the agency's executive director. Nobuo Tanaka, said today.
Oil production will fall this year, Tanaka also told reporters in Warsaw.
"According to our forecasts non-Opec supply will be reduced by half a million barrels per day in 2009 and on the whole production will be down 1.7 million barrels per day," Reuters quoted him as saying.
"Current inventories are very high and that helps easing the market at the moment. Because demand is so weak the inventories of over 60 days are a bit exaggerated," he said.
Last month the IEA said it expected total demand to fall by 2.4 million bpd this year, a big reduction from 1.25 million in the agency's previous monthly report.
The IEA, energy adviser to 28 developed countries, will release its next monthly oil market report in mid-May.