Business | Oil & Gas
Opec expects modest rise in 2oo8 demand
Opec said yesterday that world oil demand in 2008 will grow moderately while supply from rival producers will expand, reducing the need for crude from the exporter group.
- Reuters
- Published: 00:18 July 17, 2007
London: Opec said yesterday that world oil demand in 2008 will grow moderately while supply from rival producers will expand, reducing the need for crude from the exporter group.
The assessment, in Opec's July Monthly Oil Market Report, underscores Opec's view that crude supply is enough and oil prices near a record high reflect a strain on refineries and other factors beyond its control.
"The outlook for the oil market in 2008 is shaping up to be quite similar to the current year, with continued tightness in the downstream supporting high product prices and frequent refinery outages exerting further upward pressure, despite the healthy crude oil market," Opec's report said.
The Organisation of Petroleum Exporting Countries said world oil demand in 2008 would rise by 1.34 million barrels per day, or 1.6 per cent, slowed in part by conservation and use of other fuels.
"Increased energy costs including high taxes as well as energy conservation measures, increased efficiency and alternative fuel use are among the main factors moderating oil demand growth next year," Opec said.
Opec's 2008 forecast compares with an estimate for growth of 1.3 million bpd in 2007, a figure little changed from the previous estimate, and is far lower than some projections for next year.
The International Energy Agency, an adviser to 26 industrialised countries, said in its own monthly report on Friday demand would balloon by 2.2 million bpd in 2008.
Oil has risen to within a whisker of a record high of $78.65 reached last August. Opec says refining bottlenecks, speculation and political tension have pushed prices up, not a lack of crude.
The IEA has repeatedly urged Opec to pump more oil to lower prices, a call Opec has rebuffed. The 12-member group meets next on September 11 to set supply policy.
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