Global slowdown, high prices squeeze oil demand: IEA

---

LONDON, Nov 10 (Reuters): World oil demand will be lower than expected this year and next as economic slowdown and high prices curb consumption, the International Energy Agency (IEA) said Thursday. The agency, which advises industrialised countries on energy policy, said oil prices had been stubbornly high, helping restrain fuel use in the United States, China and Japan in the and this trend could intensify if economic activity slowed. "The demand picture could sour significantly should economic prospects falter," the IEA said in its monthly market report. The IEA cut its forecast for world oil demand this year by 70,000 barrels per day (bpd) to 89.16 million bpd, and reduced its 2012 demand projection by 20,000 bpd to 90.47 million bpd. This brought the agency's forecast for global oil demand growth in 2011 down by 90,000 bpd, but increased its estimate of expected 2012 oil demand growth by 50,000 bpd. Oil prices have been historically strong this year, with North Sea Brent averaging more than $100 per barrel, and this has helped keep a lid on consumption in many major economies. Brent crude oil futures were trading around $113 at 1100 GMT Thursday, compared with below $90 a year ago. Despite the warnings on the outlook for demand, the IEA suggested the oil market could stay strong for some time with demand for oil from the Organization of the Petroleum Exporting Countries (OPEC) running above output. OPEC oil output rose 95,000 bpd in October to 30.01 million bpd, the IEA said, with more oil from Saudi Arabia, Angola and Libya. But demand for OPEC oil and stocks were projected at around 30.5 million bpd this year, slipping only slightly too about 30.4 million bpd in 2012 as non-OPEC supplies increased.