Global oil consumption will drop this year for the first time since 1983

Global oil consumption will be less than last year`s for the first time since 1983. The economic slowdown in the US and in Europe and slower growth in China cuts gasoline and oil demand, according to IEA.

The IEA projects world demand to fall by 200,000 barrels per day to 85.8 mln barrels a day during 2008. This forecast is 350,000 barrels a day less than IEA`s most recent projection just last month.

Oil demand may rebound in 2009, with consumption growing by 0.5%, or 400,000 barrels a day. That is still 260,000 barrels a day less than was expected last month.

Even though oil rallied almost 10% on the NYMEX session. Follow live cude oil prices here on the Oil Traders Blog.