30 Jun 2009

Global oil consumption forecast cut

3:17 pm on 30 June 2009

The International Oil Agency has cut its five-year forecast for global oil consumption, saying demand is unlikely to pick up again until 2012 at the earliest. It blames the global slowdown.

Datamonitor energy analyst Kash Burchett says there is also some structural changes as people prefer smaller, more fuel-efficient cars and government controls tighten.

He says the IEA report also indicates oil prices may settle down after the wild swings of recent years as consumption contracts.