A Review of the Nigerian Energy Industry

OPEC, EIA downgrades oil demand growth forecasts

11 October 2012, Sweetcrudee, HOUSTON – THE Organisation of Petroleum Exporting Countries, OPEC, and the US Energy Information Administration, EIA, have downgraded their predictions for growth in world oil demand.

The EIA cut 45,000 barrels per day off its expectations for this year to a growth of 790,000 barrels per day.

It also chopped 80,000 barrels off its prediction for next year of 920,000 barrels per day.

At the same time, the agency predicts non-OPEC oil production will grow 60,000 barrels per day more this year than previously expected, with growth next year unchanged.

Total production estimates were left largely unchanged at 52.53 million barrels per day in 2012, and 53.77 million in 2013.

World consumption for 2012 is expected to average 89.09 million barrels per day, down slightly from September’s prediction of 89.095 million.

The EIA trimmed 2013 global demand estimates to 90.01 million barrels per day, from 90.095 million in its previous estimate.

Earlier on Wednesday, OPEC cut 100,000 barrels from its world oil demand forecast for 2012, levelling its growth predictions for this year and next at 800,000 barrels per day.

The producers group said that uncertainties facing the world economy continued to impact projections for future oil consumption.

“Slower industrial production has sharply reduced global oil demand in both the US and China, and the winter outlook represents further uncertainties in the coming months,” the report said.

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  • Perhaps we needn’t look farther to decipher why Ngozi Okonjo Iweala and her economic team pegged the oil price benchmark for the 2013 budget at $75 per barrel. We hope that the lawmakers will consider this reality before rejigging the budget to suit that whimsical flight of fancy.

  • Perhaps we needn’t look farther to decipher why Ngozi Okonjo Iweala and her economic team pegged the oil price benchmark for the 2013 budget at $75 per barrel. We hope that the lawmakers will consider this reality before rejigging the budget to suit that whimsical flight of fancy.