"The International Energy Agency on Wednesday subtracted 570,000 barrels a day off its 2009 world oil consumption forecast due to weak global economic activity and warned that increasing trade protectionism could further damage energy consumption.
In its latest downward demand revision, the IEA forecast world oil consumption to slow to 84.7 million barrels a day, representing a drop of one million barrels a day, or 1.1%, from 2008 and the biggest annual drop in 27 years.
Economic recession in the U.S. and many other developed nations is expected to rollback world oil consumption to 2006 levels.
In another sign of how weak demand is, total crude oil consumption in the U.S., the world's biggest consumer, is expected to fall to 1998 levels. U.S. consumption is projected at 19 million barrels a day, a 2.9% drop from last year when demand fell by more than 5%.
"We seem to be on a downward escalator we can't get off of. Until we see a bottoming out and a degree of stability on the financial and economic side, energy market weakness is going be with us for some time" said David Fyfe, editor of the IEA report." in the Wall Street Journal
Demand keeps falling and the Contango is wider again. Conditions are still favouring the bears.
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