IEA estimates 2013 oil demand

The International Energy Agency (IEA) on Friday forecast a 1.0 per cent increase in oil demand this year, with average global demand set to reach 90.8 million barrels per day (mb/d). The latest estimate is slightly higher by 240,000 b/d than the forecast by the IEA a month ago and it represents a rise of 930,000 b/d over 2012 average demand. The IEA said in its "Oil Market Report (OMR)" that "heightened expectations for China" and stronger demand in the last three months had been the "main contributors" for the demand hike that surfaced in the fourth quarter. At the same time, the Agency noted a global supply slip in December, when output fell by 170,000 b/d to 91.2 mb/d. OPEC December supply fell to its lowest level in a year at 30.65 mb/d, principally on lower Saudi Arabian and Iraqi output. But Non-OPEC supply rebounded by 90,000 b/d last month to 54.2 mb/d and is expected to rise by another 590,000 b/d in the first quarter of 2013. For all of 2013, Non-OPEC supply is expected to by 980,000 b/d to averave 54.3, which would be the highest growth in this production since 2010.