OPEC ups 2010 world oil demand growth to 1.2%

VIENNA — The Organization of Oil Exporting Countries (OPEC) on Friday revised upwards its world oil demand growth estimate for 2010 to 1.2 percent but urged caution in predicting future trends."Given stabilised oil demand in the US, the world oil demand growth forecast is revised up by 0.1 million barrels per day (bpd) to show growth of 1.05 million bpd or 1.2 percent," the cartel said in its monthly report.Total demand for 2010 was now expected to reach 85.5 million bpd, up from 84.46 million bpd in 2009.The cartel warned however that a slower economy in the second half of the year, caused by a phasing out of fiscal stimulus, would likely affect demand."Looking to the second half, the pace of economic growth is projected to slow, not only in the OECD (developed countries) but also across most emerging and developing markets, indicating that oil demand growth will remain moderate."There is need to be cautious about forecasting oil demand for the remainder of 2010," the report said."Moreover, other factors such as government policies could impact growth in demand," it added, citing plans by the Chinese government to meet environmental targets by the end of the year which could cut into oil demand in the country."For the whole year, oil demand growth is expected at around 1.0 million bdp, lower than the pre-recession annual average of around 1.7 million bpd," OPEC noted."Next year, the situation is not expected to be much different," it added. Copyright © 2010 AFP. All rights reserved. More »

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