Tuesday June 8, 6:34 pm Eastern Time
EIA sees extra 300,000 bpd
shortfall in world oil supply
WASHINGTON, June 8 (Reuters) - The U.S. Energy
Information Administration said on Tuesday it expects
world demand for crude oil to exceed supply by an
additional 300,000 barrels per day (bpd) this year.
In the latest update of its monthly short-term energy
outlook, the EIA raised its forecast for world oil demand
this year to 75.3 million bpd from 75 million bpd, but left
unchanged its supply estimate of 74.0 million bpd, leaving a 1.3 million bpd shortfall in
global oil supplies.
The revised forecast reflects a 100,000 bpd increase in U.S. oil demand this year to
19.3 million bpd, while demand in Europe was raised by 200,000 bpd to 14.9 million
bpd.
The EIA also said its forecast assumes that Asian oil demand begins recovering this
year from the sharp slowdown last year, and that the recovery will continue through
2000.
''It is not expected that petroleum demand growth in Asia will return to rates seen
prior to the recent regional economic crisis,'' the EIA said.
The agency said it expects OPEC countries to reach about 75 percent of their 4.3
million bpd oil production cut, before compliance slips in the latter half of this year as
higher oil prices increase the incentive for countries to raise their production.
Non-OPEC production is expected to remain flat this year as low oil prices in 1998
delayed the development of some oil projects and caused oil production to be shut in,
the EIA said.
However, non-OPEC oil production will increase in 2000 as higher prices counteract
some of the same forces that caused oil output to lag in 1999, the agency said.
(-Tom Doggett, Washington Energy Desk, 202-898-8320). |
