Economic Weakness Could Slow Demand for Oil, IEA Report Says

According to CNN Money, the International Energy Agency (IEA) is warning that continued global economic weakness through next year could slow demand for oil. The IEA, in its monthly report, said that oil prices have dropped as much as $15 per barrel since early August “amid growing concerns over government debt and the likely impact on the global economy.” The IEA said the world oil supply averaged 88.7 million barrels per day in July, which is relatively robust compared to the prior month. That’s an increase of 600,000 barrels from the daily average in June. But the demand has been down slightly in 2011, by 100,000 barrels per day. The IEA said this year’s demand has been trimmed by “high prices and slowing economic growth.”