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June oil analysis

One of the key things in the IEA's June oil report is an upward revision of demand in 2006 and 2007 by about 0.170 mb/d.

This means that in each of those years it is now thought that the world burnt an additional rougly 62,050,000 barrells of oil compared to what was thought to be the case in the previous month.

It is hard to measure these things which is why there are continual revisions to the data.

One would expect some of the demand reduction from price (cf Stagecoach announcing more travellers) to feed through into these figures and it has not done so yet.

The current IEA prediction, therefore, is for supply to be less than demand. (ie a stock draw down), but the IEA predictions of demand for 2008 have gone down by 230,000 b/d since last month.

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