IEA cuts oil forecast for developed world

The major industrialized countries will use less oilthis year and in 2009 thaninitially forecast, according tothe InternationalEnergy Agency.

TheParis-based organization said Wednesday it has sliced by 160,000 barrels a day its forecast of oil consumption bythe countriesof the Organization of Economic Co-Operation and Development.

The energy group, which givesadvice to its 27 member countries, now figures that the major developed economieswill consume 48.4 million barrels of oil a day in 2008.

At that level, the main industrialized countries, such as Canada and the United States, willconsume 1.4 per centless oil and derivatives than they did in2007.

The IEA now estimates that global oil demand will average 86.8 million barrels a day in 2008 and 87.6 million barrels a day in 2009.

In addition, the agency expects the United States to use aboutfour per cent less oil in 2008, mainly because of lower economic growth.In its original forecast, the IEApredicted a drop of 2.3 per cent in American oil demand this year.

The International Energy Agency did not break out Canada's demand separately in its forecast.But, comparing Canada's oil usage this June with last June, the country is burning one per cent less energy in 2008 versus 2007.