The International Energy Agency has said high prices are eroding demand for oil and threatening the West’s economic recovery.
The IEA – which is the energy advisor to industrialised nations – again trimmed its global oil demand growth estimates though it said demand from developing economies including China was likely to remain unaffected.
The latest IEA estimate is for 89.2 million barrels per day this year, a 1.5 percent increase on last year.
OPEC, which is slightly less pessimistic about demand, is predicting its production capacity will be 33.8 million barrels per day in 2011.
Despite dramatic falls in oil prices this week, and earlier in May, the IEA feels: “The market bull run may have legs for a while longer.”
March data showed a marked slowdown in global oil demand, although the agency warned those figures could have been distorted by the devastating earthquake in Japan and the Easter holiday period.