IEA sees oil use rising as global growth picks up

Global oil demand will increase more quickly this year as economic growth accelerates, outstripping supply even as shale oil production in the United States reaches record highs, the West’s energy watchdog said on Tuesday.

The International Energy Agency (IEA) said world oil consumption would increase by 1.3 million barrels per day (bpd) this year, 50,000 bpd higher than previously forecast.

“Global oil demand growth appears to have gradually gained momentum in the last 18 months, driven by economic recovery in the developed world,” the IEA said in its monthly report.

“Most OECD economies have by now largely exited the restraints of recession, with strong gains in some countries in
the energy-intensive manufacturing and petrochemical sectors.”

U.S. oil production is increasing rapidly and is forecast to rise by 780,000 bpd this year, but the Organization of the
Petroleum Exporting Countries will also have to pump more to meet the burgeoning demand.

The IEA, which advises most of the largest energy consuming countries on energy policy, raised its forecast for the demand for OPEC oil this year by 200,000 bpd to 29.4 million bpd.

Demand over the last few months has depleted oil inventories despite higher production, it said.

The Paris-based agency said commercial oil stocks in the world’s industrialized nations plummeted in November by 53.6 million barrels, the biggest monthly decline since 2011.