Energy Agency: exit of incentive plans threatens oil demand

18. January. 2010

Reuters

An official in the International Energy Agency said on Monday that end of enormous economic stimulus programs around the world threatens the modest recovery of world oil demand this year. The Governments  spent money to revive the ailing economies last year and is expected to end these programs with out of recession. And this would affect the demand for oil that recover after two years of deflation.
Richard Jones, Deputy Executive Director of the International Energy Agency in an interview with Reuters "this thing being closely, and we believe that this will be as downward risks for demand ".


Last week, China -the second largest consumer of energy-shook global markets when increase the compulsory reserve for banks, which raising fears of further tightening of monetary policy, and this may cause a slowdown in China's demand for energy.


The International Energy Agency predicted growth of energy demand of 1.4 million barrels per day in its monthly report last week, and total demand will reach 86,3 million barrels per day at its highest level since 2007.
Jones said that oil markts "full in supply" so unlikely for OPEC to change oil production during the meeting to be held in March,
 berhanou Jones (expected) that we see a similar stance in March as we have seen in the past few meetings of keep the status without change.