IEA Cuts Oil Outlook

The International Energy Agency cut its long-term forecast for world oil demand due in part to lingering effects from the global recession, as well as new policies designed to cut the use of fossil fuels.

The IEA is said world oil demand may grow by just six million barrels to about 91 million barrels a day by the year 2030 if a climate deal is signed and implemented. This represents a downward revision of one million barrels a day from the agency’s forecast a year ago, according to the Wall Street Journal.

Consumption is forecasted to increase to 88 million barrels a day from the current 85 million per day. This is below the IEA’s projection made last year of 94 million barrels a day.

From the Bull Pen: World oil demand may still be suppressed, but bulls know crude prices could still head higher because of supply and currency issues. For oil exposure, the gap up in Transocean (RIG) could be an opportunity. One can fade (read: buy) any weakness into gapfill (85.40); a sell stop can be set below that level.

From the Bear Cave: Bears can look to Darden Restaurants (DRI). One can consider playing the downside into 34 resistance. A buy stop can be set above that level.

A Quick Check Around the World

Asian trading closed with the Nikkei 0.63%, India -0.35%, Hang Seng 0.27%, Shanghai 0.10%, and Taiwan 0.75%.

Across the pond, we see the FTSE 0.27%, CAC 0.07%, DAX 0.24%

As of 8:20 a.m. EST, S&P Futures are trading -4.25 to 1087.50 and Nasdaq futures are -3.000 to 1763.50.

A Look at Commodities

Over in commodities, crude oil is -0.22 to 79.21 while gold is -2.50 to 1098.90 this morning. Silver is -0.18 to 17.290 and copper -2.155 to 294.60.

The dollar Index is +0.1300 to 75.2650.

No events on the radar today, but click here for the full list of this week’s events.

Good luck today!