IEA demand estimates

Furthermore, the International Energy Agency announced today that it is revising its oil demand estimates downward for the second half of 2002. They cite the slow economic recovery as the primary reason for the revision. Slower oil demand growth increases the likelihood that prices will remain stable (all other things equal, of course). This pattern is not surprising, though — in the same sense that the beginnings of economic recoveries are often “jobless,” companies do more with less of all of their inputs, energy included. It’s one of the hallmarks of increasing productivity.