IEA says Oil Demand Will Fall
Apr 12th, 2008 | By Doug Casey | Category: Oil Investment & Alternative EnergyIn the energy market Friday, crude for May delivery spun its wheels, closing at $110.14/barrel, up just 3 cents. May reformulated gasoline gained 1.52 cents, to $2.8073/gallon.
Crude was flat as the International Energy Agency, an energy adviser to 27 developed countries, slashed its oil demand estimates. The IEA wrote in its monthly report that the world will likely consume 87.2 million barrels of oil a day this year, a drop of 310,000 barrels from last month’s forecast.
“Resurfacing doubts about demand … look to have emboldened sellers,” wrote John Kilduff, of MF Global.
That could be temporary. “There are some developments which point toward an easing supply/demand balance during the second quarter,” wrote Credit Suisse analyst Tobias Merath, which “should result in lower” oil prices during the second quarter.
Crude could decline below $90 a barrel, he said, and that “should then represent a good buying opportunity.”
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