WASHINGTON, D.C. -- World oil consumption is projected to fall by 800,000 b/d in 2009, according to the Energy Information Administration's latest Short-Term Energy Outlook.
"The outlook for supply and demand fundamentals indicates a fairly loose oil market balance over the next two years," EIA says. "The global economic downturn points to declining oil consumption in 2009, while additional production capacity from both OPEC and non-OPEC nations should boost surplus production capacity, reducing the likelihood of a renewed strong upward pressure on prices."
Total world oil consumption is expected to record a modest rebound in 2010, rising by 880,000 b/d from year-earlier levels, on the assumption of the beginning of economic recovery, according to EIA's short-term report.
EIA projects West Texas Intermediate crude oil to average $43/barrel in 2009 and $55/barrel in 2010.