The IEA said that aggregate demand among OECD ( Organization for Economic Cooperation and Development ) countries was largely flat in June year-on-year, countered by the strong growth trajectory in Asia of 5.8 percent from last year.

“Strong growth in Asia and Oceania, caused by post tsunami additions to Japan and the robust expansion that continues to be seen in Korea, balanced out modest declines elsewhere...”

However the Asian growth story was countered by the “subdued” demand seen across the Americas and gloomy outlook in Europe, the report said, due to an erosion in consumer sentiment, a rise in unemployment and a deterioration in confidence in the manufacturing sector.

“Subdued demand conditions persist for OECD Americas — the U.S., Canada, Mexico and Chile — suppressed by a combination of stuttering economic growth, relatively high oil prices and continued efficiency gains…The oil demand outlook remains relatively bleak in Europe, reflecting the ailing state of the economic backdrop there.”

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