Demand doubts cloud Opec's investment

Riyadh: Uncertainty over future demand for Opec's oil is clouding the investment picture for major producers already spending hundreds of billions on boosting energy capacity.

Oil's relentless rise from below $50 in January to a lifetime high of $98.62 last week has already dented fuel consumption - especially in top consumer the United States - casting doubt on future demand projections.

Citing the "short-term shock effect" of record high oil prices, the International Energy Agency on Tuesday reduced its forecast for demand in the fourth quarter this year by nearly 600,000 barrels per day (bpd).

"High prices could have a serious impact on future demand for Opec oil," Kuwait's acting oil minister Mohammad Al Olaim said on Thursday at a symposium ahead of a meeting of Opec heads of state on November 17-18.

"The issue of future demand poses a serious challenge for consumers and producers. We need to work closely to improve the efficiency of the market."

Kuwait plans to invest $60 billion over the next five years at home and abroad. Nigeria is seeking investment of $15 billion a year over the next five years and Iran wants to spend a similar amount.