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We saw this coming! OPEC gets the jitters on Poor News Data across the Globe
With the outlook for economic growth in the US revised downward, the Organization of Petroleum Exporting Countries has cut its forecast for worldwide oil demand growth this year by 150,000 b/d.
In its latest Monthly Oil Market Report, OPEC forecasts global oil demand will increase by 1.21 million b/d this year to average 88.14 million b/d.
OPEC noted that economic worries along with high oil prices have affected oil demand in the advanced economies of the Organization for Economic Cooperation and Development (OECD), leading to weaker-than-expected consumption during the summer driving season. And oil demand in the OECD is expected to continue to contract after a temporary rebound last year.
In 2012, OPEC forecasts that world oil demand will rise by 1.3 million b/d, representing a slight downward revision from last month’s report.World economic growth has been revised down to 3.7% in 2011 and to 4% in 2012. This was mainly due to revisions in the US forecast, which was cut to 1.8% from 2.5% in 2011 and to 2.3% from 2.9% in 2012.
Developing Asian countries continue to be the main drivers of growth, the report said. Forecasts for economic growth in China are unchanged at 9% for 2011 and 8.5% for 2012. India’s forecast for 2011 growth was trimmed to 7.9% from 8.1% but was unchanged at 7.7% for 2012.
