OPEC lifts 2013 world oil demand growth forecast

LONDON Tue Feb 12, 2013 6:00pm IST

Waves crash over the conical drilling unit Kulluk where it sits aground on the southeast side of Sitkalidak Island, Alaska in this U.S. Coast Guard handout photo taken January 1, 2013. REUTERS/Petty Officer 3rd Class Jonathan Klingenberg'/USCG/Handout/Files

Waves crash over the conical drilling unit Kulluk where it sits aground on the southeast side of Sitkalidak Island, Alaska in this U.S. Coast Guard handout photo taken January 1, 2013.

Credit: Reuters/Petty Officer 3rd Class Jonathan Klingenberg'/USCG/Handout/Files

Related Topics

LONDON (Reuters) - World oil demand will grow faster than previously thought in 2013, producer group OPEC said on Tuesday, citing signs of a recovery in the world economy.

Consumption of oil will expand by 840,000 barrels per day (bpd) this year, the 12-member Organization of the Petroleum Exporting Countries said in its monthly report, 80,000 bpd more than previously expected.

The report adds to signs that oil demand is outstripping expectations in early 2013, and supporting prices. Oil hit a nine-month high above $119 a barrel on Friday, supported by stronger-than-expected demand growth in China.

"While a tentative recovery in the global economy is visible, a number of fiscal-related issues in the developed countries remain and are likely to impact growth in the coming months," OPEC said.

Due to higher demand, and little change in supply expectations from producers outside the group, OPEC expects demand for its crude to average 29.78 million bpd in 2013, up 130,000 bpd from the previous estimate.

While the report suggests oil markets are in surplus, it points to a narrower gap between global supply and demand in the first half of the year as OPEC further trims production towards its target level of 30 million bpd.

Demand for OPEC crude will average 29.20 million bpd in the first half of 2013, the report estimated, while OPEC in January lowered its output by about 21,000 bpd to 30.32 million bpd according to secondary sources.

That implies inventories could build up by about 1.12 million bpd in the first half should OPEC maintain January's output rate, less than the 1.3 million bpd stockbuild indicated in last month's report.

Saudi Arabia told OPEC it produced 9.05 million bpd in January, little changed from 9.025 million bpd in December, confirming figures provided last week by an industry source.

OPEC's is the first of this month's three closely watched supply and demand reports to be released. The U.S. government's Energy Information Administration is scheduled to release its latest update later on Tuesday.

The International Energy Agency, adviser to 28 industrialised countries, issues its report on Wednesday.

(Reporting by Alex Lawler; Editing by Alison Birrane)

FILED UNDER:
  • Most Popular
  • Most Shared

Reforms Plan

REUTERS SHOWCASE

Border Talks

Border Talks

India names Ajit Doval as special envoy for China border talks.  Full Article 

WTO Deal

WTO Deal

U.S. seeks to step up India trade talks  Full Article 

Phone Masts

Phone Masts

American Tower to buy Bharti Nigeria phone masts for $1.1 billion  Full Article 

Infrastructure Plan

Infrastructure Plan

India targets private cash to build railways to its ports.  Full Article 

Shadow Banking

Shadow Banking

Reserve Bank planning more measures for NBFCs.  Full Article 

Auto Sector

Auto Sector

Hyundai Motor, Kia Motors lift 2014 global sales target on China, emerging markets  Full Article 

Oil Prices

Oil Prices

Some fund managers see oil falling to $60 without OPEC cut.  Full Article 

Project Shelved

Project Shelved

Jindal Steel shelves $10 bln project after coal setback.  Full Article 

Market Eye

Market Eye

Sensex, Nifty rise to record after China, ECB stimulus boosts risk appetite.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage