IEA: China Growth Won’t Lead to Oil Price Rally

25 November 2009 (Last Updated November 25th, 2009 18:30)

The International Energy Agency (IEA) does not think rapid growth in Chinese oil demand will lead to a rally in crude oil prices next year, the agency's executive director said. That is partly due to demand for oil from industrial nations in the Organization for Economic Cooperation and Deve

The International Energy Agency (IEA) does not think rapid growth in Chinese oil demand will lead to a rally in crude oil prices next year, the agency's executive director said.

That is partly due to demand for oil from industrial nations in the Organization for Economic Cooperation and Development (OECD) falling, Nobuo Tanaka told Reuters in an interview.

"We don't see much concern that an increase (in oil demand) in the non-OECD countries may create a problem for market situation for next year," he told the news agency.

The IEA's annual World Energy Outlook released earlier this month said if government policies stay as they are, Chinese demand will rise by 3.5% annually until 2030.

Chinese oil demand is expected to more than double to 16.3 million barrels per day (bpd) by 2030 from 7.7 million bpd in 2008.