Slower world economic growth has started to stunt oil consumption and will curtail oil demand this year, the International Energy Agency said today.
In its monthly report the Paris-based IEA said it trimmed its forecast for oil demand growth by 140,000 barrels a day to 1.5 million in 2001.
Oil demand weakness has emerged in all OECD regions, the agency said.
"The downside economic and oil demand risks remain predominant, making the issue how quickly and how far to adjust forecasts," the report said.
High crude prices and mild winter weather in Europe and Asia also hurt demand.
The IEA said commercial oil stocks in OECD countries were drawn down sharply in December - by 1.97 million barrels per day.
Stocks at end-December 2000 were in a year-on-year surplus of 26.4 million barrels in North America and a 21.5 million barrels surplus in Europe.
Reuters