IEA forecasts oil price for 2011 at over $100
ST. PETERSBURG. June 16 (Interfax) - The International Energy Agency (IEA) forecasts oil prices this year at over $100 per barrel, said David Fyfe, the agency's spokesperson at the St. Petersburg Economic Forum on Thursday.
He said that the IEA's forecast for oil this year is $20 per barrel higher than the forecast produced in 2010, adding that prices should hold above $100.
He said that o high prices for oil have slowed down the recovery of the world economy after the crisis.
Fyfe added that IEA forecasts for the period until foresees an increase in free capacity for oil supply owing to the crisis in Libya. However, this supply will likely be substituted by rising supply from other countries owing to high oil prices.
Demand for oil will increased by 1.2 million barrels a day on average, largely because of China and Middle Eastern countries.
Nobuo Tanaka, the head of the IEA, said that demand for oil in OPEC countries has been declining while gas demand has increased. However, economic recovery should spark a wave of demand in OPEC countries.
According to the IEA's forecasts, daily oil consumption will increase to 95.3 million barrels from 88 million barrels for 2010. China will account for 41% of rising demand.
Production capacity will increase by 1.1 million barrels daily to 100.6 million barrels a day in 2016. Total production capacity in 2010 came to 93.8 million barrels.
Supplies of oil from OPEC countries will increase to 37.85 million barrels a day in 2016 from 35.72 million barrels a day in 2010. Rising production in Iraq, Angola and the United Arab Emirates will largely secure this production increase.
Production in Libya might recover in 2012 while Iraq will likely boost output by 1.5 million barrels a day to 4.1 million barrels at day in 2016.
Oil supply from non-OPEC countries will increase to 55.4 million barrels a day compared to 52.7 million barrels a day in 2010.
Tanaka recalled the hottest events of the year, saying that the conflict in Libya and the accident at Japan's Fukushima Nuclear Power Plant (NPP) has had an impact on world demand. "Following the accident at Fukushima, we don't need to recall the constant risks that might change in regards to demand," he said.
