World demand for oil will increase in the final months of 2010, but will be lower than expected in 2011, The International Energy Agency said.

The IEA cut its forecast for 2011 demand to 1.21 million barrels per day, from 1.27 million bpd, Reuters reported. The agency also increased its estimate for 2010 by 260,00 bpd, citing factors such as heating oil restocking.

"The market should remain pretty well supplied at least until the middle of next year," said David Fyfe, head of the IEA's oil industry and markets division.

If world economic growth falters, that could impact world oil demand, the agency said.

"If the lower case GDP scenario materializes, that would trim demand quite dramatically and the market would look very well-supplied through 2011," Fyfe said.

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Big John

This is a stupid article because usage means nothing to the oil industry. Usage has been dropping for two years but the price of oil and gas keeps going up. They use any crazy excuse that happens to come along. They will keep blood ******* Americans until the last drop comes out of the pump.

October 13 2010 at 5:45 PM Report abuse +1 rate up rate down Reply

The world only has a finite volume of oil left in the ground. Once this is gone it is gone. How long before this happens. Not many years and definately before my grang children reach old age. But man is an engeneous animal and is already finding other methods of propultion. However oild not only supplies fuel but many other chemocals associated with producing life saving drugs. Now we may hate the French but they have got it right over 86% of its electricity is from nuclear power. They will not suffer from energy shortage, unlike the British who are so far behind that the consequences will be catastrophic when oil and gas and coal run out. We need to be aware of the shortages and should heed the warning of earlier e-mails. If you think power and fuel is expensive now? just watch the future.

October 13 2010 at 2:41 PM Report abuse rate up rate down Reply