The International Energy Agency has revised downward its world demand growth forecast for oil by 2 million barrels per day, “virtually unchanged” though the forecast is 130,000 bbls lower.

Yet "downside risks to U.S. and global GDP" were increasing, although "physical supplies" had improved.

"Offsetting adjustments leave 2008 demand virtually unchanged at 87.8 million barrels per day,” the IEA’s Oil Market Report said.

Meanwhile, the IEA said December OPEC crude supply rose by 825,000 bpd to 32 MM bpd after the inclusion of 500,000 bpd from Ecuador; the restoration of 325,000 bpd in the United Arab Emirates and higher Iranian exports would soon weigh in.

The IEA also noted Angolan and Iraqi production beginning to tell.