OPEC members increase global crude oil demand for 2011

24 July 2010 24 July 2010

BonTrade

In it’s latest report OPEC member countries forecast an 1.2% increase in global oil demand in 2011 with demand for its own crude oil to rise for the first time since 2007.

OPEC said that and in 2011, growth would pick up only fractionally to 1.2% or an additional 1.0 million barrel ber day reflecting continued caution about the pace of the global economic recovery.

Nevertheless, demand for OPEC crude the 12 country cartel accounts for 40% of the world’s oil was set to see growth of 0.2 million barrels per day the first increase in 3 years.

OPEC’s latest forecasts differ slightly from those recently published by the IEA. While the IEA also forecast stable oil demand growth both 2010 and 2011, it put oil demand this year at an average 86.5 million barrels per day and 87.8 million barrels per day next year.

OPEC said that as in 2010 oil demand growth for 2011 would take place in non OECD countries, notably China, India, the Middle East and Latin America. The US would remain the key to recovery. Any further delay in economic recovery will of course lead to a downward revision in the world oil demand in total.

Other factors that might play an important role in 2011 crude oil demand are oil prices, US oil drilling bans and new regulations for oil companies who participate in deepwater drilling oil wells.