Oil Consumption To Drop to Lowest Levels in 27 Years

Related to our post on USO versus USL two days ago, the International Energy Agency has just released its February forecast which confirms the lower demands expected for 2009.

• 2009 oil demand forecast fell by 570 kb/d to 84.7 mb/d (million barrels per day). This is 1 mb/d less than in 2008, the biggest drop in 27 years.
• January 2009 oil supply fell by 520kb/d 85.2 mb/d.
• OPEC supply fell in January by 920 kb/d to 29 mb/d
• Q4 2008 storage increased by 170 kb/d due to low refiner runs
• Floating storage is between 50 to 80 mb.

The IEA Expects world consumption to drop to 2006 levels and USA consumption to drop to 1998 levels, or 19 mb/d (2.8% less than in 2008). China oil consumption growth was revised down by only 30 kb/d, for a growth of 0.7%.

Latest oil consumption and supply charts: