IEA: Slower growth to hit oil demand

A man stands next to a billboard about the Chinese economy on a street in Beijing on February 2, 2009. China said around 20 million rural migrants were now out of work -- more than triple the number announced in January -- in an indication that the slowdown in the world's third-largest economy was intensifying. AFP PHOTO / Peter PARKS

Growing slower: the Chinese economy

PETER PARKS

Steve Marshall

 10 August 2012 10:28 GMT

A slowdown in economic activity is set to put the brakes on global oil demand growth next year, the International Energy Agency (IEA) has warned.

Annual demand growth will be restricted to 900,000 barrels per day this year, giving an average of 89.6 million bpd, with the rate sinking to 800,000 bpd in 2013, when demand is seen at 90.5 million bpd, the energy watchdog forecast in its latest oil market report.

However, oil prices, which have rebounded to back above $110 per barrel after earlier falling below $90, are likely to be given support in the next few months by geopolitical tensions as well as sanctions on Iran crude exports over its nuclear programme.

"The geopolitical dimension is likely to continue to provide something of a…

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