World oil demand stable, offset by economic developments- OPEC

11 July 2012 11:42  [Source: ICIS news]

LONDON (ICIS)--Global oil demand for 2012 remains stable as a sluggish OECD economy and nuclear power plant shutdowns in Japan couterbalance each other, OPEC said on Wednesday.

The cartel’s global oil demand growth forecast for 2012 of 900,000 bbl/day is unchanged from its previous predictions.

Slow OECD (Organisation for Economic Co-operation and Development) economies continue to suppress the region’s oil demand while in Japan the shutdown of most of the country’s nuclear power plants has led to increased crude and fuel oil burning, OPEC said in its July monthly oil report.

“The unsteady pace of the global economic recovery is causing considerable uncertainty for world oil demand,” it added.

OPEC forecast world oil demand growth in 2013 to stand at 800,000 bbl/day as a result, with non-OECD nations continuing to contribute to all of the world’s oil demand for next year.

“The industrial and transport sectors are expected to contribute all of the world’s oil demand growth for next year,” it said.

OPEC’s world economic growth expectations remain unchanged at 3.3%, with downwards revisions of the US and eurozone economies counteracting continued expansion in Japan, which saw its growth expectations revised up to 2.5%, from 2%.

Non-OPEC supply is forecast to increase by 700,000 in 2012, supported by anticipated growth from North America, Latin America, and the former Soviet Union.

Demand for OPEC crude in 2012 declined slightly from OPEC’s previous assessment to stand at 29.9m bbl/day, a decline of 100,000 bbl/day compared to the previous year.

By: Neha Popat
+44 208 652 3214

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly