Recession has taken its toll on the demand for oil also. As more and more people are found to be losing their jobs and salaries getting frozen, oil consumption went down and this has led to the decrease in demand of oil worldwide.
According an estimate released by the International Energy Authority, demand for oil may come down further in the next year also. The agencies are estimating that there will be a decrease of 200,000 barrels each day and the amount may go up to 400,000 barrels with every passing day in the coming year.
The agencies and market operators are of the opinion that there is some paradox between the decreasing demand in oil and also the price of oil not coming down. It can be seen that price of crude oil in the international market still stands at $110 and it is not likely to come down in the coming months. There was also a disruption in supply from Libya in the month of August. Though the supply has not become normal, but it is slowly coming back to normalcy as days are passing by.
The international authorities are claiming that the demand may come down to one third of the anticipated amount of their growth and it may further come down in the year 2012. However, the authorities are happy that there is expected to be very few market surprises and the market situation that will come will be comfortable and affordable.
