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OPEC says slowing recovery to weigh on oil demand
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LONDON: World demand for OPEC's oil will be lower than expected this year and next due to a slowing economic recovery and higher supplies from non-member countries, the group said on Thursday.
The Organization of the Petroleum Exporting Countries, in a monthly report, also said the winding-down of government measures to stimulate economies could weigh on consumption in the next few months.
"Oil demand could weaken over the remainder of this year," said the OPEC Monthly Oil Market Report, which is written by economists at the group's Vienna headquarters.
"In fact, the impact of the slowing economic recovery on oil demand is already evident as growth in oil consumption is slowing down and has even turned negative in some parts of the world."
The report underscores the cautious view on oil consumption taken by OPEC, whose demand growth estimates are lower than those of other closely watched forecasters such as the International Energy Agency (IEA), which represents consumers, and the US government.
OPEC expects world oil demand to rise by 1.05 million barrels per day in 2010 to average 85.51 million bpd and to expand by the same amount in 2011, the report said. The growth forecasts were unchanged from last month.-Reuters
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