Oil Demand Growth To Slow In 2011, IEA Says

(NewsCore) - Surging oil demand growth in the fourth quarter 2010, driven by increasing Chinese consumption, robust US gasoline use and colder northern hemisphere weather, was likely to give way to more moderate growth in 2011, the International Energy Agency (IEA) said Friday in its monthly oil market report.

Higher demand in recent months was the chief factor behind the latest jump in oil prices, said the IEA, which advises the US and other leading industrialized economies on energy. Oil prices recently hit a two-year high and were trading around $90 a barrel. Recent demand jumps were "exceptional" and "giddy," the IEA said.

"Fingers still point at shadowy 'speculative' inflows to futures and derivatives markets, but a more plausible foundation for price strength lies with now apparent third-quarter fundamentals," the IEA said.

Read more: Wall Street Journal