IEA slashes oil price forecast as market demand falls

• High fuel prices are starting to put pressure on oil consumption

• The International Energy Agency (IEA) slashed its forecast for global oil demand this year by 100,000 barrels per day

• The IEA said: “Rising oil prices and a deteriorating economic environment are starting to take their toll on oil demand

The International Energy Agency (IEA) said on Wednesday that global oil demand is expected to increase by 1.

"Rising oil prices and a deteriorating economic environment have started to take their toll on global oil demand, but this is being partially offset by strong power generation demand and a recovery in Asia," the IEA said in its closely watched Oil Market Report (OMR) released today.

In its July forecast, the IEA said total global oil demand is expected to average 99.

In June this year, the IEA had predicted that global oil demand would grow at a rate of 1.

Growth in global oil demand in 2023 will be driven by strong growth trends in developing economies, the IEA said

　　"Currently, weaker-than-expected growth in oil demand in advanced economies, as well as the elasticity of supply from large-capacity countries, has led to a loosening of the overall balance," the IEA said

　　High fuel prices have started to dent oil consumption in the OECD, but this has been largely offset by a stronger-than-expected demand rebound in emerging and developing economies led by Asian powerhouses, the IEA said

　　The IEA noted that although oil market sentiment has deteriorated significantly since June amid expectations of an economic slowdown and recession fears, "the premium for crude oil prices has been real, as seasonal demand for crude oil and petroleum products has risen while supplies remain tight.

　　“With the EU’s oil embargo coming into full effect by the end of this year, the oil market is likely to tighten again