2011 Global Oil Demand Will Exceed Forecasts

According to the International Energy Agency its forecasts for global oil demand in 2011 are not accurate. It admitted that it had to make slight alterations to its past predictions in order to guarantee accuracy of the numbers. One of the causes for the faulty forecast is the unexpected global economic growth. Solely emerging markets will drive the increase in demand while at the same time the OECD demand is expected to return to its “underlying, structural decline in 2011.”

IEA’s monthly report showed that is anticipates global oil demand to increase by 1.4 million barrels a day, reaching 89.1 million barrels a day in 2011. This rise equals a 1.6% or a 360,00 barrels increase from IEA’s report in the previous year. Next to IEA also OPEC, the Organization of Petroleum Exporting Countries, shows signs of the rising demand in oil as it gained 250,000 barrels a day in order to reach 29.58 million barrels a day in December.