Oil demand still sliding

Global oil consumption will be 83.4m b/d in 2009, says the IEA. That represents another downward revision to previous forecasts – following a reassessment of global GDP assumptions and much lower-than-expected demand data from the first quarter of 2009. If the projection for demand holds, consumption will have fallen by 2.4m b/d compared with 2008. Supply is also falling – by 400,000 b/d in March, to 83.4m b/d. Most of the fall came from Opec: March output, at its lowest level in five years, was 27.8m b/d, down by 235,000 b/d from February. Output from the 11 quota-observing members remains 0.72m b/d over the rolled-over March target of 24.9m b/d. Opec's spare capacity is now 5.5m b/d, says