World oil demand growth will return next year after shrinking this year for the first time since 1983 due to the global economic slowdown, the International Energy Agency (IEA) said on saturday.

The IEA’s view is in stark contrast to the US Energy Information Administration, which on Tuesday said demand is expected to shrink by 450,000 barrels per day (bpd) next year following a predicted 50,000 bpd decline this year.
In its monthly report, the Paris-base IEA cut its oil demand estimate for this year by 350,000 bpd to 85.8 million bpd - a 200,000 bpd year-on-year fall.
The adviser to 28 industrialized countries sees demand rebounding to 86.3m bpd next year, based on the International Monetary Fund’s assumption the global economy will gradually recover in the second half of next year.
“Our working scenario rests on assumed resilience outside of the Organization for Economic Co-operation and Development (OECD) regions, albeit with slower growth than in the past five years,” the IEA said.
“This month’s report saw scant amendment to recent non-OECD demand data (in contrast to the OECD), and therefore we resist the temptation to jettison growth for 2009, despite weaker economic indicators in some cases.”
David Fyfe, head of the IEA’s Oil Industry and Markets Division said the agency’s forecast still demonstrated global economic weakness next year.
“It’s marginally higher growth from a lower base,” Fyfe said.
(Source: Trade Arabia)