The International Energy Agency on Thursday cut again its global oil demand forecasts for this year and next year as economy recession in the world-wide.

In its latest monthly report, the Paris-based agency lowered its forecasts for global oil demand to 86.2 million barrels per day in this year and 86.5 million barrels per day in 2009, compared with 86.5 million and 87.2 million barrels per day for 2008 and 2009 in its previous report.

The IEA said its decision was based on the economic prospects of the International Monetary Fund. The agency has also lowered the price of crude a barrel to US$80 in 2009, which was sharply down from US$110 a barrel of the last three months.

The report said that China was "a key driver" of global demand for oil in recent years. China is faced with a slowdown in activity, and the price of oil in the country surges. The IEA revised down its forecasts for Chinese oil demand for 2009 at 290,000 barrels per day less than projected earlier.

The world demand for crude should still grow by 0.1 percent per day this year and by 0.4 percent next year, the report said.

The IEA also noted an increase in oil supply in October to 86.9 million barrels per day. However, the OPEC supply remained stable in October.

(Xinhua News Agency November 14, 2008)