IEA predicts slowdown in demand for oil

The International Energy Agency (IEA) has predicted that there will be a slowdown in the demand for resources from the oil industry in the coming months as global economic recovery falters.

Following the IEA's most recent monthly oil report, which revealed that demand growth stalled in June due to high process and laboured economic growth, worldwide demand curbed "dramatically", the organisation told the Independent.

"The spectre of a sharp slowdown in economic growth near–term, particularly in the US, is prompting some industry forecasters to cut global oil demand estimates for this year and 2012," the IEA stated.

It added that high oil prices, sovereign debt and fiscal uncertainty are "sapping" consumer confidence in many countries, compounded by anti-inflationary monetary tightening in some areas.

The move comes after oil industry giant BP announced profits of $5.3 billion (£3.2 billion) for the second quarter of this year.

The figures are a stark contrast to the $17 billion loss the company made in the same period last year after it was forced to make pay outs as a result of the massive Deepwater Horizon oil spill in the Gulf of Mexico.