RTTN:OPEC Trims 2011 Oil Demand Growth On Uncertain Economic Growth
(RTTNews) - The Organization of the Petroleum Exporting Countries revised down its world oil demand growth forecast and said uncertainty in the world economy has dimmed the picture for 2011, particularly in the OECD region.
In its monthly Oil Market Report released today, the OPEC revised down its 2011 world oil demand growth by 0.18 million barrels per day or mbd to now stand at 0.90 mbd. Further for 2012, the cartel trimmed its forecast to 1.20 mbd from the earlier 1.30 mbd.
"Chinese oil demand is bound to uncertainty because of new government policies aimed at reducing transport fuel use. India's increase in retail prices is expected to play a major role in dampening oil consumption in the coming year," the OPEC said in the report.
However, the OPEC maintains it world economic growth forecast at 3.6 percent in 2011, but revised down its projections for 2012 to 3.7 percent from 3.9 percent.
The cartel expects non-OPEC oil supply to increase by 0.4 mbd in 2011, following a downward revision of 0.16 mbd from the previous month, mainly due to lower-than-expected supply from Canada, the UK, Brazil, and Azerbaijan.
The demand for OPEC crude in 2011 is estimated at 29.9 mbd, unchanged from the previous assessment and around 0.1 mbd higher than last year.
