Global Economy Will Continue to Shrink, Claims IEA

The International Energy Agency has cut its crude oil forecasts for 2012 and 2013.

The International Energy Agency cut its global crude oil demand forecasts for 2012 and 2013 in response to "the weak economic backdrop" as consumption fell 0.3 points in Q2.

Large non?OECD baseline revisions reduce the aggregate global oil demand outlook for 2012, by 0.25 mb/d.

Meanwhile, the agency said demand growth would fall in 2013, to 0.8 mb/d (averaging 90.5 mb/d), as the stronger macroeconomic outlook is "offset by, among other reasons, the resumption of nuclear capacity in Japan reducing prospective oil needs from the power sector," the agency said in a report released today."