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World's thirst to boost demand, says IEA



By Upstream staff 

The West's energy watchdog, the Internation Energy Agency (IEA) said it expects a rebound in global oil demand next year.

In its monthly report, published today, the IEA added that oil supplies from non-Opec producers will sink to a six year low this year.

Opec, which pumped 29.8 million barrels per day in September, has less than 2 million bpd in reserve, the IEA said. Much of that oil is heavy and high in sulphur, making it hard for some refiners to process.

The IEA trimmed 2005 global oil demand growth by 90,000 bpd to 1.26 million bpd, but expected a rebound to 1.75 million bpd next year. Recent economic data from the world's big consumers have suggested that persistent high oil prices were starting to erode demand.

The Paris-based agency cut non-Opec supply growth by 330,000 bpd to 170,000 bpd this year, but anticipated a recovery to 1.3 million bpd in 2006.

Investment by Opec could boost the group's sustainable production capacity by 500,000 bpd by the end of the year and further in 2006, the IEA report said.


Tuesday, 11 October, 2005, 08:39 GMT  | last updated: Tuesday, 11 October, 2005, 08:39 GMT

Fill her up: global demand has dipped this year, thanks to high prices, but the IEA said it expects demand to surge in 2006
 

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