BP statistical review for world energy, IEA cut its forecast for oil consumption (again)

Today International Energy Agency cut its forecast for global oil demand for a fifth month as record prices dented consumption. The IEA reduced its 2008 forecast by about 70,000 barrels a day to 86.77 million barrels. For me this is another sign that although oil supply remains tight the recent “superexponential” oil price growth is increasingly driven by speculation.

Earlier today BP released its 2008 world energy review. Key points of the report are as follows:

• World primary energy consumption increased by 2.4% in 2007 – down from 2.7% in 2006,but still the fifth consecutive year of above-average growth. The Asia-Pacific region accounted for two-thirds of global energy consumption growth. In 2007 Chinese growth in world energy consumption was 52%. Chinese energy consumption was up 7.7%YoY
• In 2007 global output of gas and coal grew , but oil output fell by 300k bbl per day
• Oil consumption growth is now concentrated in countries that subsidize consumer prices, primarily oil-exporting nations and rapidly growing non-OECD economies such as China and India.