OPEC Says Oil Demand Growth to Slow in 2013
The Organisation of Petroleum Exporting Countries (OPEC) has said lower growth in world oil demand will continue in 2013.
The 12-member organisation, noted continued geopolitical concerns and security challenges remaining major risk factors for some producing countries in 2013. Nigeria, is among member countries currently experiencing security challenges.
In its July Monthly Oil Market Report, the organisation saw world demand in 2012 at 88.68 million barrels per day (mbpd), almost unchanged from its previous forecast of 88.69 mbpd. In 2013, demand was to grow to 89.50 mbpd, up 820,000 barrels per day, and compared to the 890,000-bpd increase expected in 2012.
The slowdown, OPEC said, is expected not only in the Organisation of Economic Cooperation and Development (OECD), which is projected to see a further contraction of 0.2 mbpd – but also in the non-OECD, where growth is forecast at around 1.0 mbpd.
“Besides the euro zone crisis, geopolitical tensions in the Middle East, the contraction of manufacturing in the U.S. for the first time since 2010 and decelerating economic growth in emerging markets have been fuelling uncertainties regarding global economic growth,” OPEC said in a monthly report.
Non-OPEC supply is predicted to increase by 0.7 mbpd in 2012 and 0.9 mbpd in 2013. “The non-OPEC supply forecast for 2013 incorporates considerable risks on factors such as natural decline rates across various regions and progress in new supply developments, as well as due to environmental issues, production costs and oil price levels,” the report added.
They also blamed the unsteady pace of global economic recovery.