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Global oil demand undented-IEA's Tanaka

Mon Mar 10, 2008 11:16pm IST
 
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(Corrects to add dropped word "significantly" in third para quote, adjusts second para to reflect change)

By Ikuko Kao

PARIS, March 10 (Reuters) - World oil demand is holding up despite crude prices stuck resolutely above $100 a barrel, the International Energy Agency's head told Reuters on Monday, a day ahead of the energy watchdog's monthly report.

IEA Executive Director Nobuo Tanaka said the agency's March outlook would show little change in oil demand.

"Overall global oil demand has not changed significantly as of March due to robust demand from emerging markets, such as India, China and oil producing countries while U.S. demand growth is seen slowing due to the economic slowdown," Tanaka said.

A slowing economy in top fuel consumer the United States led the IEA last month to cut demand growth by 310,000 bpd to 1.67 million bpd from its previous estimate.

Oil hit a fresh record high above $107 a barrel on Monday.

"We are concerned that oil prices will start affecting the global economy if they stay high above $100 for long term," said Tanaka.

Global oil inventories will increase for the short term thanks to OPEC's decision last week to hold its output unchanged, he said.  Continued...

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