The International Energy Agency (IEA) cut its 2009 demand forecast by another one million barrels per day, bringing total revisions for the year to three million bpd.  Total demand for 2009 is thus forecasted at 83.4 million bpd, some 2.4 million bpd less than in 2008, and the lowest level since 2004.  According to reports, while the prospects for lower demand have muted concerns about a “supply crunch,” the IEA warned that resulting low oil prices could undercut investment in future production. Most experts in the industry, for instance, “envisage oil supply levels in the next five years seriously constrained by today’s lower prices and lower investment.”

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