Why do International Energy Agency forecast sharpest fall in oil consumption in 2009 since 1981?

In the 30 rich countries belonging to the Organization for Economic Cooperation and Development, the IEA forecasts a 5.1 percent drop in oil demand this year to 45.1 million barrels a day.

In non-OECD developing countries, the IEA forecast a 0.4 percent slide in oil demand this year to 38.1 million barrels a day

Best Answer

jillybeansisme answered a question in Commodities.
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jillybeansisme answered 5 months ago …

I would venture to guess that it is because oil is still tied to the dollar and when the dollar is weak, oil prices go up. When oil prices go up, John Q. Public tightens the belt and drives less, thereby creating less demand.

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