Demand for Crude Oil to Hit 87m bpd – IEA
By Udeme Clement-Ogbuanu with agency report, 01.17.2008
International Energy Agency (IEA), has said in its report on Wednesday, that demand for crude oil in 2008 would be 87.8million barrel per day, which represents a 2.3 per cent rise from 2007 levels and slightly lower than previous estimates.
OPEC Secretary-General Abdullah Al-Badri, said this on Wednesday, saying there was disconnect between price and fundamentals. "The market is really influenced by other factors," he said, adding that OPEC would not be hesitant to increase production if fundamentals justify IEA declaration.
He emphasised that the rising demand in China, falling oil stocks and tensions in the oil-rich Middle East and Nigeria remain important supportive factors for oil prices. "OPEC is due to meet on February 1, to discuss output levels, and there are already some calls for production to be boosted," he said.
However, US President, George Bush, has called on OPEC to consider the wider implications of near record oil prices and the impact it would have on the global economy. If "one of the biggest consumers' economy suffers, it means less purchases, less oil and gas sold," Bush said.
US light crude fell 91 cents to $90.99 a barrel, after dropping $2.30 on Tuesday. London's Brent crude oil dropped 85 cents to $90.13 a barrel. Fears of a US recession have increased after a number of top companies missed analysts' profit forecasts and data has shown weakening consumer demand.
In past weeks, the cost of crude has surged to record levels, breaking through the $100-mark for the first time.
However, a number of analysts and oil industry experts have said the increases in price are down to speculative buying and geo-political fears, rather than a shortage of crude.
