The International Energy Agency (IEA) cut its forecast for oil demand for this year as weak global economy and the impact of Hurricane Sandy weighed on consumption.

In its ‘Oil Market Report’ for November, the Agency reduced its projection for the final quarter of this year by 290,000 barrels a day (b/d) to 90.1 million b/d. It said demand for the whole year would grow by 670,000 b/d – 60,000 b/d less than what was predicted last month.

Antoine Halff, Editor of the report said: “2012 may go down in oil history not just as one of exceptionally frequent supply disruptions, but also as one when no production shortfall seemed large enough to affect global oil markets in a truly big way.”

Demand next year is expected to increase by 870,000 b/d to a total of 90.4m b/d – 100,000 b/d less than in last month’s forecast.