Growth of demand for oil slows in US and China

Growth of demand for oil is falling off in China and the United States, and actual demand fell more than 1 percent in Europe in the first quarter, according to the International Energy Agency.

It said that it is other Asian countries, the former Soviet Union, and the Middle East that are driving forecasts of growth in demand.

In Europe, oil deliveries were down 11.6 percent in Germany and fell by 6.4 percent in Italy. In China, demand grew by 19.3 percent in the first quarter of last year.

This year’s first-quarter growth there is estimated at only 4.5 percent. Reasons for this slackening in demand may include a lower incentive to import oil due to government limits on retail prices.

Meanwhile in the United States, demand grew 1.2 percent in the first quarter, less than half the demand growth in the same quarter last year. This is a bit below expectation and has been blamed mostly on higher prices.

In real numbers, US demand is expected to rise by 260,000 barrels per day this year, compared to a rise in demand of 490,000 barrels per day in 2004.

Globally, OPEC has predicted that in 2005 demand growth will amount to 1.78 million barrels per day. This compares to a demand growth of 2.79 million barrels per day in 2004.

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