Chinese demand for oil forecast to grow by 5.8%

Larry Elliott

Saturday February 11, 2006, The Guardian

Demand for oil this year is likely to grow less rapidly than expected but will remain strong due to the continued growth of the Chinese economy, the world's leading energy watchdog said yesterday.

The International Energy Agency predicts demand growth of an extra 1.78m barrels per day, down from its previous forecast of 1.83m bpd, and also shaved its growth forecast for 2005. In China, second only to the United States in its appetite for oil, 5.8% growth is forecast.

The IEA blamed geopolitical tensions in Iran and Nigeria, and supply losses in Russia and Australia for high oil prices.