Oil Demand Down; 1st Time Since ’83


By JAD MOUAWAD
Published: December 11, 2008
Global oil consumption will drop this year for the first time since 1983, as an economic downturn in the West and slower consumption in China will reduce demand, according to the world’s main energy forecaster.

The International Energy Agency, an adviser to industrialized nations, said on Thursday that it expected oil demand this year to drop by 200,000 barrels a day to 85.8 million barrels a day. The new forecast is 350,000 barrels a day less than the agency’s last monthly report.

The energy agency expects consumption to recover somewhat next year, although at a much slower pace, as the global economy recovers in the second half of 2009. It sees consumption growing by 0.5 percent, or 400,000 barrels a day. That is still 260,000 barrels a day less than forecast last month.

“Clearly, if we are now heading for a prolonged and global outright recession, then the 0.5 percent global oil demand growth we now envisage for next year may not materialize,â€