Posted on 08/10/2006 4:37:27 AM PDT by Flavius
NEW YORK -(Dow Jones)- The U.S. Energy Information Administration on Tuesday cut its forecast for 2006 world petroleum demand because of slower-than-expected demand growth in Organization of Economic Cooperation and Development countries.
The EIA, the statistics and analysis arm of the Department of Energy, said it expects world petroleum demand to grow at 1.3 million barrels a day in 2006, rising to 1.8 million barrels in 2007.
"This represents a downward revision for 2006, as EIA has lowered its oil demand for 2006 by 300,000 barrels per day," the administration said on its web site.
Surplus world crude oil production capacity, all of which is in Saudi Arabia, is expected to increase slightly in 2006 and 2007, relative to 2005 levels. This is partly in response to the lowered oil demand expectations for 2006. The web site didn't give figures for the surplus capacity.
"Because only limited increases to surplus capacity are expected during the forecast period, existing and potential supply problems in Nigeria, Iran, Iraq and Venezuela will continue to raise concern," the EIA said.
The EIA said its current-month price forecast for West Texas Intermediate light, sweet crude oil is $76.50 a barrel, up $3 a barrel from its July forecast, after BP PLC (BP) said it plans to temporarily close down 400,000 barrels a day of production at the Prudhoe Bay oil field in Alaska.
"The higher forecast WTI price is a result of the additional pressures we saw in July and a projected reduction in Alaskan oil production," the EIA said.
-By Matt Chambers, Dow Jones Newswires; 201-938-2062; matt.chambers@ dowjones.com.
(END) Dow Jones Newswires 08-08-06 1217ET Copyright (c) 2006 Dow Jones & Company, Inc.
After Nov. elections the oil bubble will burst, but soros. t. boone pickins, cnbc and other will laughing at all the SUUUUUUUUUUUUUUUUUUCKEEEEEEEEEEEEEEEEEEEEEEEERRRRRS.
seems you and i are the only ones that feel that way
i certainly would like oil to crash
but i think it will be after iran
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