Oil demand falling, IEA warns

Two-way trend: While geopolitical factors have kept oil prices high, global demand is now falling, says IEA

Oil demand is falling for the first time since the global economic crisis of 2008-2009, the International Energy Agency said.

The IEA warned in its monthly report on Wednesday that mild weather, high oil prices and a rising likelihood of a global recession will depress demand in 2012, Reuters reported.

Although worries about disruptions to Iranian oil exports have supported prices, consumption fell in the last quarter of 2011 year-on-year due to mild winter weather in the northern hemisphere and the overriding fears about an impending recession in the euro zone, the IEA said.

"Two inherently destabilising factors are interacting to give an impression of price stability that is more apparent than real,"…

Become an Upstream member!

Membership includes a subscription to our weekly newspaper providing in-depth news from the energy industry, plus full-access to this site and its archives. Still not convinced? Try our free trial.

Already a member?

Login

Upstream share price index