Nobuo Tanaka, the executive director of the IEA, spoke on Wednesday about demand destruction:
Overall, he said some demand had been permanently destroyed by the economic crisis and last year’s record oil price, which peaked at $147.27 a barrel in July.
He cited the closures of major car manufacturers and a shift toward more efficient vehicles.
“These are certainly irreversible trends … especially in OECD countries,” he said. “We think that the very high prices of last year certainly destroyed some part of demand because there are many businesses changing their behavior.”
Even more interesting is what he said today. From Dow Jones:
The price of crude oil is bound to rise “higher and higher” in the long term, as supply tightens and demand grows, Nobuo Tanaka, executive director of the International Energy Agency, said Friday.
Tanaka said he hasn’t yet seen a recovery in the fundamental demand for oil,
and that demand may not rise as such even when the global economic recovery
‘Demand is in the toilet’ (FT Alphaville, 03/06/09)
Clouseau-esque market-moving demand commentary, IEA edition (FT Alphaville, 14/05/09)