Paris - KUNA
Oil demand growth in 2014 will be 200,000 bbls lower than expected and oil demand will average only 92.4 million barrels per day (mbpd), an annual increase of 700,000, according to revised figures published Tuesday by the International Energy Agency (IEA).
The revisions from the IEA's report a month ago also forecast that demand growth in 2015 will average 1.1 mbpd to reach overall daily demand of 93.5 mbpd that year.
The Agency's monthly "Oil Market Report (OMR)" said the projected drop in demand growth in 2014 and 2015 was due to on reduced expectations of economic growth and the weak recent trend" in the global economy.
The International Monetary Fund and other institutions have been scaling back global growth forecasts and warning that the numerous crises and conflicts at this time could weigh on the evolution of global trade.
At the same time, oil prices fell for the third month in September due to abundant supply, slowing demand and a strong US dollar.
Brent prices have fallen by over 20 percent since June and were last seen at a near four-year low of USD 88.70 per barrel for Brent blend and at USD 85.20 per barrel for WTI.
Meanwhile, global supply rose by 910,000 bbls in September to 93.8 mbpd, on both higher OPEC and non-OPEC production.
Total supply levels are now 2.8 mbpd higher than a year ago, with OPEC alone increasing production by 2.1 mbpd.
In September, OPEC output surged to a 13-month high, led by Libya's continued recovery, and overall OPEC production rose to 30.66 mbpd, an increase of 415,000 bpd from August.
Because of the weaker outlook, the IEA has cut the "call on OPEC crude and stock change" back to 29.3 mbpd for next year, a drop of 200,000 bpd due to the more sombre economic outlook.
OECD stocks held by industrialised countries rose to 2.698 billion barrels in August and preliminary data indicated that inventories in September rose by 14 million barrels.