Sunday, December 27, 2009

World Oil Demand to Surge in 2010, Says OPEC

World oil demand to surge in 2010


THE world oil demand in 2010 would reach 85,13 million barrels per day (mb/d), increasing by 0,82 mb/d, or 0,98 percent compared to this year, according to the forecast made by Opec in its latest monthly oil market report in Vienna.

The Organisation of the Petroleum Exporting Countries (Opec) has increased the world oil demand by 60 000 barrels a day in the new monthly report in comparison with the monthly report of last month.

While the forecast of world oil demand in 2009 from Opec remained the same as the previous monthly report, or 84,31 mb/d, it fell by 1,62 percent, or 1,39 mb/d compared to 2008.

The latest report said that the demand for crude oil next year in China, which would be firstly out of economic recession, would grow obviously.

It would be expected to increase by 4,5 percent. Besides, the growth rate of oil demand in the Middle East and North America would also reach 3,34 percent and 0,99 percent.

However, oil demand of the Western Europe and the Organisation for Economic Co-operation and Development (OECD) countries, would be likely to keep declining, in which the Western Europe countries would reduce by 1,37 percent and Japan would even fall by 2,03 percent.

In the report, the demand for Opec crude oil in 2009 was estimated to follow a downward revision from 28,67 mb/d of the previous assessment to average 28,58 mb/d.

However, the report also predicted that demand for Opec crude oil would be expected to be 28,61 mb/d next year, an upward revision of around 10 000 barrels a day from the previous month and representing a slight increase of 30 000 barrels a day.

The upward revision of Opec in world oil demand was based primarily on the overall global economy recovery.

It was expected in the report that the world economy would get rid of decline next year, showing a growth of 2,9 percent from a contraction of 1,1 percent this year.

The economy of OECD-countries would expand by 1,3 percent next year from a contraction of 3,4 percent this year.

The US would also grow by 1,6 percent next year from a contraction of 2,5 percent in 2009.

Opec also estimated in its latest report that, the economic growth of China and India next year would reach 8,5 percent and 6,5 percent respectively.

In addition, the Euro zone economy would also expand from a contraction of 3,9 percent in 2009 to 0,6 percent in 2010. —

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