OPEC trims demand outlook
Source: Agencies |
October 12, 2011, Wednesday
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Print Edition
Print Edition
OPEC slashed its estimate for oil demand this year and said yesterday in a forecast that it expected sales to stagnate next year, blaming global economic uncertainty for cutting into the world's appetite for crude.
Updating last month's forecast, the 12-nation Organization of the Petroleum Exporting Countries said it expected demand to be up by nearly 1 million barrels a day this year over last. That projected increase will be 180,000 barrels a day less than its previous estimate, it said.
For next year, OPEC's monthly forecast said estimated growth in world oil demand will fall to a daily 1.2 million barrels. That would leave the global appetite for crude at just more than 88 million barrels a day for 2012.
"Uncertainty in the world economy has dimmed the picture for 2011, particularly in the OECD (Organization for Economic Cooperation and Development) region," said the monthly report referring to the major industrialized nations.
But it added that domestic policies in China and India - the two countries traditionally driving demand - also are set to contribute to the downward revision in word demand growth.
The Chinese plan to reduce fuel use, while India's decision to raise retail prices is also "expected to play a major role in dampening oil consumption in the coming year."
OPEC, which produces about a third of the world's crude, said estimated demand for its own product remains flat for this year at 29.9 million barrels a day - about 100,000 barrels a day higher than last year.
For next year, however, forecast demand for OPEC oil will stagnate at this year's levels, representing a downward revision of about 100,000 barrels a day, it said.
OPEC has left its members' output quotas unchanged for more than two years. Based on comments from leading producers in the group, expectations remain that the group will opt to hold to the status quo at its next ministerial meeting in December.
At the same time, with the cost of oil falling sharply recently, key OPEC members Saudi Arabia and Kuwait are likely to cut back on exports they unilaterally boosted over the past few months as a way to cool overheated prices.
Updating last month's forecast, the 12-nation Organization of the Petroleum Exporting Countries said it expected demand to be up by nearly 1 million barrels a day this year over last. That projected increase will be 180,000 barrels a day less than its previous estimate, it said.
For next year, OPEC's monthly forecast said estimated growth in world oil demand will fall to a daily 1.2 million barrels. That would leave the global appetite for crude at just more than 88 million barrels a day for 2012.
"Uncertainty in the world economy has dimmed the picture for 2011, particularly in the OECD (Organization for Economic Cooperation and Development) region," said the monthly report referring to the major industrialized nations.
But it added that domestic policies in China and India - the two countries traditionally driving demand - also are set to contribute to the downward revision in word demand growth.
The Chinese plan to reduce fuel use, while India's decision to raise retail prices is also "expected to play a major role in dampening oil consumption in the coming year."
OPEC, which produces about a third of the world's crude, said estimated demand for its own product remains flat for this year at 29.9 million barrels a day - about 100,000 barrels a day higher than last year.
For next year, however, forecast demand for OPEC oil will stagnate at this year's levels, representing a downward revision of about 100,000 barrels a day, it said.
OPEC has left its members' output quotas unchanged for more than two years. Based on comments from leading producers in the group, expectations remain that the group will opt to hold to the status quo at its next ministerial meeting in December.
At the same time, with the cost of oil falling sharply recently, key OPEC members Saudi Arabia and Kuwait are likely to cut back on exports they unilaterally boosted over the past few months as a way to cool overheated prices.
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