IEA slashes oil demand forecast

The International Energy Agency (IEA) trimmed global oil demand forecasts for a second month amid 'elusive' economic growth, and warned that Venezuela's oil industry may suffer following death of leader Hugo Chavez. The agency curbed estimates for global fuel consumption in 2013 by 60,000 barrels a day, predicting demand will increase by 820,000 barrels a day, or 0.9 per cent, to 90.6 million barrels. Venezuela, Opec's fourth-biggest producer, "could see a further degradation of the state oil company and the country's oil prospects" if Vice-President Nicolas Maduro is elected to succeed Chavez next month, the IEA said in its monthly report. "We still have the debt crisis in Europe, in the United States, and the fact that oil prices have not come up shows how bearish the situation is," said Gerrit Zambo, an oil trader at Bayerishes Landesbank in Munich. "The fundamental situation is well- supplied, and there's no danger of shortages." Brent futures have lost 1.3 per cent this year, trading at about $110 a barrel in London yesterday. Worsening unemployment in Europe as the continent struggles to move beyond its debt crisis, faltering business confidence in China and budget cuts in the US will continue to constrain oil demand, the IEA said. Prices are high enough to limit fuel consumption, it said. time of oman