IEA sees stepped up pressure on oil supplies after 2010

PARIS - The International Energy Agency warned Monday of increased tension on global oil markets after 2010 as spare capacity in the OPEC production cartel shrivels at a time when buoyant economic growth is driving up demand.

By (AFP)

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Published: Mon 9 Jul 2007, 5:11 PM

Last updated: Sat 4 Apr 2015, 10:17 PM

‘The potential effects of a combination of low OPEC spare capacity and slow non-OPEC production growth are of significant concern -- all the more so when considered alongside tightness in other hydrocarbons, particularly the natural gas market,’ the IEA said in its Medium Term Oil Market Report.

The study forecast that the supply of automotive biofuels would roughly double from 2006 production levels to 1.8 million barrels a day by 2012, when they would nonetheless account for only 2.0 percent of global oil supplies.

‘Despite four years of rising oil prices, this report sees increasing market tightness beyond 2010, with OPEC spare capacity declining to minimal levels by 2012,’ warned the IEA, a Paris-based body that seeks to coordinate the oil policies of leading consuming countries.

It cited ‘a stronger demand outlook,’ production difficulties and geopolitical problems as factors behind its downward revision of spare capacity in the Organisation of Petroleum Exporting Countries by 2.0 million barrels a day in 2009.

The report forecast that as the world economy expands by roughly 4.5 percent a year, demand for oil products will increase by an average 1.9 million barrels a day or 2.2 percent per year to reach 95.8 million barrels a day by 2012.

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