IEA Downgrades Non-OPEC Oil Supply Forecast For 2012

Oil supply from non-OPEC countries will grow less than expected in the first quarter of this year, the International Energy Agency (IEA) said on Wednesday, leaving its global oil demand growth forecast unchanged.

The agency, which advises industrialised nations on energy policy, said non-OPEC oil production will rise by 300,000 barrels per day (bpd) in the first quarter of 2012.

This is down from 490,000 bpd in previous forecasts as unplanned shut-ins topped 750,000 bpd.

The agency also downgraded its full year non-OPEC production growth to 730,000 bpd from 900,000 bpd.

Oil consumption will grow by 800,000 bpd in 2012, but the IEA warned that high oil prices could stunt the recovery.

“Demand growth will likely remain stunted by weaker economic prospects, the more so if prices stay high,” the IEA said.