IEA: March global oil output fell on Libya unrest (by Polya Lesova)

LONDON (MarketWatch) -- Global oil output fell by 700,000 barrels a day to 88.3 million barrels a day in March on reduced Libyan crude supply, the International Energy Agency said Tuesday in its monthly oil market report. Crude supply from the Organization of the Petroleum Exporting Countries (OPEC) fell by 890,000 barrels a day in March to 29.2 million barrels a day on a near-70% drop in Libyan output, according to the IEA report. Effective OPEC spare capacity stands at 3.91 million barrels a day, with Saudi Arabia accounting for 3.2 million barrels a day. Forecast global oil product demand remains largely unchanged for both 2010 and 2011, the IEA said. "A revision to OECD demand, in anticipation of higher Japanese oil use for power generation and reconstruction following the March earthquake/tsunami, has broadly offset downward adjustments to non-OECD demand," the agency added.