IEA Sees Tighter Oil Market, Boosts Global Demand F’cast

The International Energy Agency raised forecasts for global oil demand this year because of stronger growth expectations for China and said the world oil market is “tighter” than previously estimated.

“All of a sudden, the market looks tighter than we thought,” the Paris-based agency said, boosting its 2013 global demand forecast by 240,000 barrels a day. World consumption will increase by 900,000 barrels a day, or 1 percent, this year to average a record 90.8 million. Saudi Arabia, the world’s largest exporter, reduced production from its highest in 30 years, and inventories in developed economies are contracting after accumulating in much of 2012, according to the IEA.