2006 IEA Outlook Let the Good Times Roll

The International Energy Agency (IEA)’s latest Oil Market Report forecasts worldwide oil demand to reach 84.9 million barrels per day (bpd) over 2006, a 1.5% increase over last year’s 83.66 million bpd. One major feature of this outlook is the United States’ limited participation in demand growth. This outlook shows US demand increasing by just 170 thousand bpd, or by 0.8% over 2005. Other OECD demand growth is also weak. By contrast, non-OECD demand grows by over 3%. This week we take a look at what this outlook means for tanker demand and charter rates.