The International Energy Agency has revised for the sixth time in a row downgraded its 2012 global oil demand forecast, reflecting an economic outlook that has continuously deteriorated.
So much so that the market is now expected to even have "sufficient flexibility to adapt" to a possible cut in Iran's crude exports, "however large." This is while international tensions with the Islamic State have increased in recent months due to its nuclear program, frictions that could lead to a drastic drop in its oil exports.
On average for 2012, the IEA now expects an oil demand of 89,9 million barrels per day, 0,3 million barrels less than previous estimates, which are updated on a monthly basis. In this way, demand will increase by 0,9 percent compared to 2011, but again with differentiated dynamics: strong increases in emerging countries, against weakness or declines in advanced economies.
