Massive dive in demand for oil predicted


Updated:


Global demand for oil is going to fall even faster than previously thought, forecasters said yesterday.

Consumption will decrease because of 'lower-than-expected' economic growth. The Paris-based International Energy Agency (IEA) said economies of rich countries were contracting more quickly than it realised and demand could fall for the first time in 15 years.

In its monthly survey, the IEA cut its forecast for demand this year by 1m barrels daily to 83.4m barrels a day.

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Oil: IEA cut its forecast for demand this year by 1m barrels


The IEA said that 'the pace of contraction is close to early 1980s levels', and 'economic and oil demand recovery will be deferred to 2010'.

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