OPEC boosts oil-demand forecast
Bloomberg News, Monday, July 21
By ALEX LAWLER
LONDON -- The Organization of Petroleum Exporting Countries raised its estimate for growth in world oil demand in 2003 by 13 per cent, indicating a greater-than-expected need for its oil later in the year.
World oil demand will rise by 1.01 million barrels a day in 2003 to an average of 77.79 million, economists at OPEC's Vienna headquarters said in a report received by e-mail late Friday. In June, OPEC expected demand growth this year of 890,000 barrels a day.
"Consumption is forecast to grow in every single quarter of 2003," the report said. Increased use in China and Japan, U.S. economic recovery and revisions to previous data account for the increase, OPEC said.
World demand this quarter will average 77.37 million barrels a day, 400,000 more than expected last month, OPEC said. For 2003, OPEC expects demand to be 340,000 barrels a day more than it forecast in June.
Because of rising demand, OPEC will need to pump more oil later this year, the report said. By the fourth quarter, the group will need to produce 26.32 million barrels a day to balance the market.
For now, OPEC production is declining. In June, oil output from the group, except Iraq, fell to 25.65 million barrels a day, 781,000 barrels a day less than in May, the report said, citing estimates from outside agencies. |
