IEA Cuts Non-OPEC Supply Forecast

13 December 2009 (Last Updated December 13th, 2009 18:30)

The International Energy Agency (IEA) has reduced its forecast for 2010 oil supplies for non-OPEC countries due to delays in North American projects. According to the revised forecast, non-OPEC nations will supply 51.6 million bpd next year, which is 265,000 bpd less than previous proje

The International Energy Agency (IEA) has reduced its forecast for 2010 oil supplies for non-OPEC countries due to delays in North American projects.

According to the revised forecast, non-OPEC nations will supply 51.6 million bpd next year, which is 265,000 bpd less than previous projections, the IEA said.

Projections for non-OPEC supply through to 2014 were boosted as higher investment restores delayed projects, reports Bloomberg.

The IEA said the revisions in crude project start-up dates, particularly in the Gulf of Mexico, has led to downward revisions.

The IEA report said that outlook for supply overall has improved, with a higher price assumption and a widespread perception that the worst of the global economic crisis is over. The report also says that many upstream projects are back on the drawing board.

The IEA increased its projections for worldwide oil demand in 2010 and 2014 on the basis of an expected revival of the global economy.

According to the IEA, global oil demand in 2010 will be 86.3 million bpd, an increase of 130,000 bpd compared with earlier projections. It also said that oil demand up to 2014 will increase by 1.9 million bpd compared with its previous forecast in June.

The revision is attributed to higher than anticipated oil demand in 2009, which was triggered by huge fiscal and monetary stimuli proposed by countries, as well as bigger growth projections by the International Monetary Fund.

China and India are likely to spearhead the rise in global oil demand by 1.5 million bpd next year compared with this year.