The Organisation of Petroleum Exporting Countries (OPEC) has reduced its global oil demand forecasts for the end of this year and into 2012.
Oil well head Image: Cogdogblog |
The organisation, which represents 12 oil producing countries in Africa, the Middle East and Latin America, is viewing the downturn of the global economy as the main driver for reduced crude oil demand.
OPEC now predicts global oil demand will grow by 880,000b/d to the end of the year, revised down from 1.06m b/d earlier in the year. Estimated consumption for 2012 is down from 1.27m b/d to a new estimate of 1.19m b/d. OPEC's own output is likely to reach just under 30m barrels by the end of the year and remain at that level throughout 2012.
Non-OPEC output is forecast to lift to 52.6m barrels by the end of the year after reduced output from a number of countries including Brazil, Canada and the US. All three are expected to ramp up production again next year, with total annual non-OPEC output expected to reach 53.46m barrels.
The estimates are supported by other recent forecasts relating to China's consumption, while continuing to rise, will not increase as dramatically as 2010. Indian consumption is also expected to ease as retail prices increase across the country.