The IEA maintains that the current oil demand has exceeded that production. This is a case since the June 2010, which marked a milestone in the surging oil demands. The difference between this demand and supply which is presently 1.4 million barrels a day is because the global stocks of oil have been decreasing gradually. This imbalance between the supply and the demand of oil is a also the governing factor behind the high prices of oil and gas.
The August oil production figures amounted to 89.1 million barrels a day and a loss of 1.6 million barrels a day from Libya’s share of production. Resultantly the benchmark globally for Brent Crude has been exceeding $100 a barrel since last spring this year, and there are least signs of it falling.
The Agency has however trimmed its demand forecasts for the coming years as a result of growing concerns about the uncertainty looming large over the global economy. The agency has cut the oil demands for this year by 200,000 barrels a day and by 400,000 b/d in the year 2012. This is however just a slowing down of annual growth of demands of oil, and not an actual reduction in demand. The IEA is of the opinion that oil demands for next year will increase only by 1.4 million barrels a day next year.
This forecast though seems to be a rather optimistic approach, keeping the rising troubles in the world economy in mind. The future of the Libyan oil production remains uncertain still, despite the fall of the insurgents and the Tripoli too. A number of countries’ position in the economic sphere will determine the future of oil demands and supply; China being most important one amongst them. Middle Eastern regions of oil productions will also have an interesting story to tell.
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