OPEC expects global oil demand to reach 88.87 mbpd this year



AGENCE FRANCE PRESSE

Published — Thursday 11 April 2013

Last update 11 April 2013 10:19 pm

| نسخة PDF Print News | A A

VIENNA: OPEC kept its world oil demand forecasts for 2012 and 2013 virtually unchanged yesterday, with China expected to contribute the most to growth while industrialized countries appeared to be headed for a decline.
The Organisation of Petroleum Exporting Countries (OPEC) expects world demand to reach 88.87 million barrels per day (mbpd) this year, slightly higher than its previous forecast in March of 88.83 mbpd.
This would represent a hike of 770,000 bpd from the revised figure for 2011, the organization said in its latest monthly report.
For 2013, it forecast 89.66 mbpd, with slow growth at the beginning of the year picking up in the second half, OPEC said.
"The largest share of this growth is expected to come from China, with 0.4 mbpd," meaning that oil demand for that country alone would reach 10.1 mpbd this year.
"In contrast, OECD (industrialized countries) demand is expected to see a contraction of 0.3 mbpd," the report said.
With the Americas making up the most demand in terms of regions, OPEC warned about developments in the United States, with oil consumption "strongly dependent on the impact of the (planned) spending cuts and newly adopted budget ceilings in the near future" as well as growing interest in alternative fuel sources.
Meanwhile, global oil prices fell yesterday but trimmed earlier losses after signs of stronger-than-expected demand in top crude consumer the United States, analysts said.
Brent North Sea crude for delivery in May dipped 51 cents to $ 105.72 per barrel in late afternoon deals in London.
New York's main contract, West Texas Intermediate (WTI) light sweet crude for May shed 25 cents to $ 93.95.
The US government's Energy Information Administration (EIA) revealed yesterday that American crude reserves grew 250,000 barrels in the week ending April 5.
That was far less than market expectations for a large gain of 1.2 million barrels, according to analysts polled by Dow Jones Newswires, and indicated solid demand.
"WTI was in the spotlight today with the weekly government EIA report on petroleum stocks showing a lower-than-expected rise in crude stockpiles," said analyst Michael Hewson at CMC Markets.
The EIA meanwhile added that US gasoline or petrol stockpiles rose 1.7 million barrels last week. That confounded estimates for a drop of one million barrels.
Torbjorn Kjus, oil market analyst at Oslo-based DNB Bank, said that the overall impression from the inventory report was "bearish", meaning that it would likely weigh on prices.
He added that gasoline demand was "weak", as stockpiles were normally expected to drop at this time of year.
Crude futures also trimmed losses after Federal Reserve meeting minutes suggested the central bank would curtail stimulus measures only if the job market improves significantly.
Minutes from the Fed's March 19-20 meeting reaffirmed the central bank's commitment to its quantitative easing program until the job markets improves.
The minutes showed policymakers slightly more inclined to reel in QE bond purchases this year amid signs of recovery in the labour market.
Kjus also noted that traders were still digesting a "mixed bag" of data from China, which is the world's biggest energy consuming nation.
"Overnight we had some mixed-bag Chinese trade figures which showed exports growth slowed in March to 10 percent compared to a year ago, while imports growth surged to 14.1 percent.
"However, imports of oil by the world's second largest economy fell 2.1 percent. This only helped to exacerbate demand worries which have come to the forefront recently following the release of some disappointing global economic data."

What's happening around Saudi Arabia

JEDDAH: The Saudi man who carried out a suicide bombing at a mosque in Kuwait on Friday had no previous convictions for terrorism, the Interior Ministry said.The ministry, through its Twitter account, announced that Fahad Suleiman Al-Gabbaa was born...
JEDDAH: Eight million people visited the Grand Mosque in the first 10 days of Ramadan, a 49 percent increase from last year, the Haj and Umrah Directorate said recently.Salah Saqr, director of the directorate, said the transport plan was approved and...
JEDDAH: The government has installed 5,000 high-definition cameras on all floors and courtyards of the Grand Mosque to ensure security and crowd control.These cameras are monitored 24 hours a day by officers at a control center in Mina. They have to...
GENEVA: Saudi Arabia has welcomed the report of the International Fact Finding Commission on Israeli aggression in Gaza and has lauded its effort to prepare the report despite noncooperation from Israel which did not allow the committee to do its wor...
JEDDAH: Several Yemenis have praised the government for correcting their status quickly, which created no extra burden while fasting.Many who gathered in front of the Passport Department in Asir said everything was in place for them, a local newspape...
RIYADH: The $11.6 billion King Abdullah Financial District (KAFD) is already being admired for being a smart city but nobody can tell when it will be completed.“Being a smart city, everything is state-of-the-art. There is seamless Internet access and...
RIYADH: In a new move, the Ministry of Health will conduct drug tests on all drivers ferrying pilgrims between Makkah and Madinah during the Haj season.The decision was taken at a Haj preparatory meeting held on Sunday under the chairmanship of Imad...
JEDDAH: Motorbikes are among the most important means of transportation in Makkah during Ramadan because they are easy to use and cope easily with congestion in the central area next to the Grand Mosque. Despite the presence of public transportation,...
JEDDAH: A local man here runs a business started 150 years ago by his grandfather making sought-after Hijazi sweets for Eid and other festivals.Samer Jastaniah, 35, has three family shops making these products. “I am the grandson of the doyen of swee...
RIYADH: Saudi students have won six medals — a gold, a silver and four bronze — at the 19th Junior Balkan Mathematical Olympiad (JBMO 2015), securing the fifth place for the nation, as against 13th in its first participation in 2013.Rinad Abu-Jamal f...
Ambassador of Belgium Geert Criel:— Which particular aspect of Saudi Arabia you like the most? The friendliness of its people.— What is your favorite and oft-repeated Arabic word? Ahlan wa Sahlan.— Which book is by your bedside these days? World Orde...
AL-AHSA: Saudi farmers here need more support to buy fertilizers, medicines and equipment, and market their products.This is the view of Ahmed Al-Musalmi, who recently won the country’s ‘Ideal Farmer Award.’ He said high production costs and low mark...
JEDDAH: The Commission of the Promotion of Virtue and Prevention of Vice (Haia) has launched 20 initiatives aimed at improving the professionalism of employees and limiting individual interpretations and actions while carrying out duties.Sheikh Abdul...
RIYADH: Medical studies and research for new methods in the treatment of chronic diseases suggests that fasting could help combat cancer and boost effectiveness of treatment.Scientists doing research on the positive aspects of fasting discovered that...
RIYADH: The Ministry of Education has announced that Saudi universities would accept 95 percent of high school graduates, despite a royal decree four years ago setting a ceiling of 70 percent.The royal decree had approved the “Afaq Project,” a strate...

Stay Connected

Facebook