Speaking out: Nobuo Tanaka
IEA warns of new global demand dip
Global oil demand may fall next year if the economies of non-Organisation for Economic Co-operation & Development (OECD) countries slow further, Nobuo Tanaka, the head of the International Energy Agency (IEA) said.
A fall in global demand would be the first for several decades. Asked if the global oil demand could contract in 2009, Nobuo Tanaka said: "It's possible. If the big non-OECD economies like China or India decline further, that is possible.
"Especially in the OECD countries the decline is clear and is getting sharper and sharper ... while non-OECD ecoomies like China, India and the Middle East, the oil demand is robust," Reuters quoted him as saying
Tanaka would not comment on a preferable oil price.
"What is a relevant or preferable price levels ... we are not saying any price level specifically."
The IEA's cut in forecast demand on Friday was the latest in a series of downward revisions, in response to evidence that the global economy is weaker than previously thought.
Oil prices have fallen more than $100 a barrel since reaching a record high of $147.27 a barrel in July, dragged lower by the gloomy economic outlook and weakening oil demand.
Worldwide demand will decline by 20,000 barrels per dayin both 2008 and 2009 to 86.03 million bpd and 86.01 million bpd respectively, according to a Reuters poll of 11 analysts, banks and industry groups last month.