World oil demand to grow again in 2010: OPEC

Wednesday, 16 September 2009

World oil demand will decline slightly in 2009 but start growing again next year, the OPEC oil producers' cartel said on Tuesday in its monthly report, standing by its previous forecast. World oil demand in 2009 this year was expected to contract by 1.56 million barrels per day (bpd) to 84.05 million bpd, the Organization of Petroleum Exporting Countries said in its September report.A month ago, OPEC had been pencilling in a fractionally bigger contraction of 1.65 million bpd for this year.

Then, "in 2010, global demand is forecast to return to growth following two years of consecutive declines, increasing 0.5 million bpd to stand at 84.6 million bpd," the cartel said.That figure was unchanged from the previous report.Improved economic activity in the United States last month was helping world oil demand to stabilise, OPEC said."The US is playing a significant role in world oil demand, showing a comeback and reducing the contraction from 0.7 million bpd in July to almost flat in August. This is due to improved economic activity, summer driving consumption and the low base in the same month of 2008," the report explained.

On top of this, oil demand was strong in developing countries such as China, India and the Middle East.Those same regions would remain the driving force behind world oil demand growth next year, OPEC continued."As seen in recent years, most of the growth will take place in non-OECD (Organisation for Economic Cooperation and Development), mainly China, India, the Middle East and Latin America," it said.Overall, "in anticipation of a slow economic recovery next year, world oil demand growth is expected at 500,000 bpd," the report said.

Source: AFP