VIENNA, Nov. 10 (UPI) — The International Energy Agency predicted oil demand in 2012 would decline because of slow consumption levels in U.S. and Asian markets.
The IEA, in its latest forecast, said demand was expected to be “weaker than expected.”
The IEA said it trimmed its initial forecast by 20,000 barrels per day but saw a 1.5 percent increase in demand for 2012 to 90.5 million barrels of oil per day.
In unveiling its World Energy Outlook report from Vienna this week, IEA Executive Director Maria van der Hoeven said in a statement that world governments needed to look closer at low-carbon technologies as energy needs mount in the coming decades.
The IEA predicted that by 2035, fossil fuel use will decline about 6 percent while use of renewable energy will increase 5 percent.
The Organization of the Petroleum Exporting Countries, in its monthly report, expressed concern about the overall health of the global economy. The cartel saw some improvement in the U.S. economy, but worried that the sovereign debt crisis in the eurozone could push the European economy “into unchartered territories.”
Overall, OPEC said, fluctuating regional economic forecasts meant world oil demand would “average 87.8 million bpd, unchanged from the previous report.”