11 September 2012 11:44 [Source: ICIS news]
LONDON (ICIS)--World oil demand in 2013 is expected to decline from 2012 levels because of weakening economic growth, OPEC said on Tuesday.
In its September monthly oil report, the cartel predicts 2013 global oil demand at 800,000 bbl/day, as the economic slowdown in developed countries “increasingly spill over into non-OECD (Organisation for Economic Co-operation and Development) economies.”
OPEC forecast global oil demand growth in 2012 at 900,000 bbl/day, unchanged from the previous report.
World oil demand rose in July, leading to year-on-year growth of 1.1m bbl/day in the third quarter, the report said, with non-OECD nations consuming 42.9m bbl/day of oil during July, an increase of 1.0m bbl/day year on year.
OPEC also predicts growth expectations for the world economy to decline from 3.3% in 2012, to 3.2% in 2013, following anticipated falls in the growth of US and Japanese economies.
The OPEC reference basket meanwhile continued its upward movement in August to settle at $109.52/bbl, pushed higher by bullish market sentiment.
“The return of significantly higher speculative activity, constraints in North Sea supply, declines in crude oil stockpiles in the US, hopes for further monetary easing from major central banks, and geopolitical factors have all contributed to the increase in crude oil prices,” the report said.
Demand for OPEC crude in 2012 remains virtually unchanged from the cartel’s previous assessment at 29.9m bbl/day. However, demand in 2013 is projected to average 29.5m bbl/day, a fall of 400,000 bbl/day from 2012.
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