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Energy Agency: Oil prices fall because of a slowing economy and increased production
FRIDAY, OCTOBER 12, 2012 13:35
London: said the International Energy Agency said Friday that the world could see a gradual decline in oil prices over the next five years due to slowing economic growth and increase the efficiency of energy consumption with high production sharply in Iraq and North America.
And reduced Agency, which advises industrialized nations on energy policy expected growth in global oil demand for the period between 2011 and 2016 by 500 thousand barrels per day, compared to its previous report in December 2011.
As a result, it will be less pressure on OPEC to produce more oil and you do not have the organization to pump more than 31 million barrels per day until 2017 to meet global demand. OPEC produced between 31 and 32 million barrels per day this year.
The Energy Agency said in a report medium-term outlook for the oil market "has been reduced economic growth forecasts in the period covered by the report, with continued concerns about debt in the Organization for Economic Cooperation and Development, especially in the euro zone. Even China, which was the main driver of demand growth in the past decade showing signs of slowing down. "
"The readings indicate a gradual decline in prices during that period."
The decline in the price of crude Brent after the report is trading down $ 1.27 a barrel at $ 114.44 by 0910 GMT.
In its previous report in December 2011 Energy Agency predicted growth in global demand for oil by about eight percent between 2010 and 2016, but said it expects improved supplies in the market compared to previous years.
Ten months later, agency paint a picture displayed more abundant and says that demand for oil will grow by less than seven percent until 2017 will reach 95.7 million barrels per day.
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