PARIS: The International Energy Agency (IEA) raised slightly its outlook for growth of oil demand this year but warned on Friday that risks of a shock from Iran persisted despite easing prices and a supply boost by OPEC.
The IEA said oil demand in 2012 would increase by 0.8 million barrels per day (mbd) to 90.0 mbd, with consumption in emerging countries "more than offsetting" declining demand in richer OECD countries.
The IEA noted that oil prices had dropped sharply in April amid poor economic data from the US and Europe and an apparent easing of tensions between Iran and the West.
The IEA said that OPEC nations had begun to boost oil supplies in April in order to meet any potential supply shocks owing to tensions with Iran.
The agency said that global supply increased by 0.6 mbd to 91 mbd in April and raised its call on expected output from OPEC in the third quarter of 2012 by 0.2 mbd to 30.9 mbd and by 0.4 mbd to 30.7 mbd for the fourth quarter.
But despite easing tensions on the market, the IEA said "there is no room for complacency: the path of market fundamentals for the rest of the year remains highly uncertain and geopolitical risks will likely continue to keep prices high."
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