Current high oil prices could lead to a fall in oil demand - OPEC

11 March 2011 17:09  [Source: ICIS news]

LONDON (ICIS)--The downside risk for world oil demand comes from high international prices, OPEC said in its monthly oil report on Friday.

“Should strong price levels remain, this would lead to a reduction in the use of transportation fuel, especially in the summer driving season,” OPEC said in the report.

The report said that manufacturing activities were showing an upward trend, “indicating more oil consumption in most of the OECD countries and Russia.

OPEC said: “World oil demand is forecast to grow by 1.4m bbl/day in 2011, averaging 87.8m bbl/day, broadly in line with the previous report.”

Meanwhile, crude oil futures dropped on Friday because of expectations that the earthquake in Japan could result in lower demand from the country, adding to investors' uncertainties about Europe’s sovereign-debt crisis and the political unrest in the Middle East.

At GMT 16:35, April Brent was trading at $113.80/bbl, down $1.63/bbl, while April WTI was at $100.42/bbl, down $2.28/bbl.

($1 = €0.73)

By: Giovanni Coiro
+44 20 8652 3214

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