17 October 2011, Sweetcrude, Vienna – The Organisation of Petroleum Exporting Countries (OPEC) says it expects no growth in global oil demand next year due to uncertainty in the global economy.
It has also cut its estimate for world oil demand for this year, saying uncertainty in the world economy was taking a toll on oil demand, especially in the Organisation of Economic Cooperation and Development (OECD) region.
OPEC said in its latest Oil Market Report that OECD growth expectations for 2011 currently stand at 1.6 per cent, significantly lower than the initial forecast of 2.0 per cent.
The 12-member group, which controls a third of world’s oil, said world oil demand will be about 180,000 barrels per day less than its forecast for 2011.
For 2012, it stated that estimated world oil demand growth will fall by 1.2 million barrels per day to over 88 million, while estimated demand for its own oil remains 29.9 million barrels a day, just 100,000 barrels a day higher that last year.
Oil demand in developed nations has been flat or declining, but demand from the developing economies of Asia has been pushing world oil consumption higher, according to the report.
OPEC also noted that policies in China and India to curb growing oil consumption will lead to lower demand in those countries than originally forecast. The group also expressed confidence that Europe’s efforts to tackle its debt crisis would help prevent a new downturn.
