OPEC cuts 2012 world oil demand growth forecast

13 December 2011 12:32  [Source: ICIS news]

Oil pumpLONDON (ICIS)--The forecast for world oil demand growth in 2012 has been revised down by 100,000 bbl/day to 1.1m bbl/day, because of a slowdown in the global economy, OPEC said on Tuesday.

Global oil demand in 2012 is now expected to average 88.9m bbl/day, said OPEC.

Economic uncertainty has spilled over to non-Organisation for Economic Cooperation and Development (OECD) countries following the eurozone debt crisis, which has negatively impacted world oil demand, it added.

“In 2011, the global economy entered a phase of increased uncertainty. While underlying demand in the real economy has improved, the outlook has weakened over the course of the year,” OPEC said in its December monthly oil market report.

"This was mainly due to the sovereign debt crisis in the eurozone, persistently high unemployment in the advanced economies, and inflation risk in the emerging economies," it added.

OPEC said that the negative economic turbulence is affecting China, the second-largest oil consumer in the world.

“Slow oil demand, initiated in the OECD region, has moved to China and India, leading to a new downward revision of 100,000 bbl/day in next year’s oil demand growth forecast,” said OPEC.

OPEC said retail petroleum prices are also negatively affecting oil demand across the globe.

“The new downward revision is not restricted to the OECD region only, but is spreading to the non-OECD region as well. The transportation and industrial sectors are the ones most affected," it added.

OPEC said the use of oil in both sectors is noticeably slowing down worldwide.

By: Leigh Stringer
+44 208 652 3214

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