IEA oil forecast lower for 2007

November 11th, 2006

Paris - Crude oil fell after the IEA cut its forecast for oil demand growth this year for the third consecutive month.

The energy adviser to 26 nations, based in Paris, Friday cut its gauge of world oil demand.

The International Energy Agency said its November estimate of global oil product demand growth has been slightly lowered in 2006 to 1.1 percent, versus 1.2 percent in last month`s IEA report.

Lower third-quarter demand in China and Organization of Economic Co-operation and Development members across the Pacific region is the reason.

"Subdued growth in China possibly reflects stock shifts, rather than a lower trend growth," the IEA said in its November oil report. "Lower temperatures in Europe and the United States could bolster demand following a relatively mild October."