PARIS, Oct. 14 (UPI) -- Lower economic growth expectations mean the forecast for global oil demand is down, but should recover in 2015, the International Energy Agency said Tuesday.
The Paris-based IEA released its monthly market report for October, saying it cut its oil demand prediction for the year by 200,000 barrels per day from the previous month's report to 92.4 million bpd.
The IEA attributed the decline to lower economic growth. In its monthly report, the Organization of Petroleum Exporting Countries kept oil demand growth predictions steady at 1.05 million bpd for 2014.
"Annual demand growth for 2014 is now projected at 700,000 bpd, rising tentatively to 1.1 million bpd in 2015 as the macroeconomic backdrop improves," IEA said in its forecast.
OPEC last week said the global economy should grow by 0.6 percent next year to 3.6 percent. The Chinese and Indian economies should remain flat, while Europe continues to falter. The United States, which is leading in non-OPEC production, should experience an economic uptick next year.
Supplies, meanwhile, are at relative highs, with OPEC and non-OPEC producers lifting global supply by more than 900,000 bpd to 93.8 million bpd in September, IEA said. For OPEC, that was relative to what it expected for 2015 demand in terms of barrels per day.
Market dynamics have translated to slumping oil prices. Prices are to the point that some producers may struggle to make a profit in some key areas, including the U.S. shale market.
