Please ensure Javascript is enabled for purposes of website accessibility

European Drop to Keep Global Demand for Oil in Check

By Justin Loiseau - Apr 11, 2013 at 3:35PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

IEA predicts 2013 will be third consecutive year of weak demand growth.

2013 is expected to be the third consecutive year of weak growth in global oil demand, according to the International Energy Agency's (IEA) April Oil Market Report, a summary of which was released today.

The IEA highlighted what it anticipates will be the sharpest drop in European demand since 1985.

Worldwide, the IEA expects demand to increase by just 795,000 barrels per day (bpd) in 2013. Countries outside the Organisation for Economic Co-operation and Development are predicted to drive growth with an additional 1.28 million-bpd demand, but a 480,000-bpd drop in OECD consumption will offset almost 40% of that gain in demand. In Europe, demand is expected to drop by 340,000 bpd, the weakest level since 1985.

On the other side of demand, the IEA expects non-OPEC supplies to increase 1.1 million bpd, driven largely by renewed exports from South Sudan. Although the IEA's press release does not list 2013 expectations for OPEC oil supplies, it does note that March supplies dropped 140,000 bpd due to disruptions in Nigeria, Libya, and Iraq.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
345%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.