LONDON,18 August 2005 — OPEC said yesterday it had cut its estimate for growth in global oil demand in 2005 to 1.9 percent from 2.0 percent but had increased its forecasts for 2006.
Revised figures issued by OPEC showed that the organization, which groups 11 oil-exporting nations, now sees the increase in oil demand in 2005 being 40,000 barrels per day less than a previous estimate. “This marginal downward revision is the result of the first and second quarter preliminary data for some oil consuming countries such as the US and China which point to lower-than-expected consumption”, OPEC said.
Daily oil demand is now expected to increase by 1.58 million barrels per day on average during 2005 compared with 2004, bringing total global consumption to 83.6 million barrels per day.
For 2006, OPEC increased its forecasts for oil demand by 60,000 barrels per day “due to the slightly more optimistic view of the world economy for the coming year”. Oil demand is forecast to grow by 1.6 million barrels per day on average in 2006, or 1.9 percent. Total demand is set to reach an average 85.2 million barrels per day, according to the OPEC forecasts.
The 11 OPEC members, which produce more than a third of the oil consumed worldwide, supplied 30.2 million barrels per day in July, an increase of 210,000 barrels per day compared with June.
Meanwhile, crude oil futures dropped yesterday as traders took profits after US petroleum data showed drivers’ strong demand for fuel cut into gasoline supplies.
Prices initially had risen after US Department of Energy data showed the nation’s supply of gasoline fell by 5 million barrels, putting inventories at 198.1 million barrels, or 12 percent below last year.
Front-month September crude futures fell $1.28 to $64.80 in morning trading on the New York Mercantile Exchange. Crude futures hit a record peak of $67.10 a barrel in trading Friday.
On London’s International Petroleum Exchange, October Brent crude fell 94 cents to $64.14 a barrel.