London: World demand for the Organization of the Petroleum Exporting Countries’ or Opec’s, oil will be stronger than expected next year, the producer group said on Tuesday, adding to signs that an improving economic outlook will boost oil consumption.
The 12-member group is the latest forecaster to lift its oil demand estimates in the past week, following upward revisions from the International Energy Agency (IEA) and the US government’s Energy Information Administration.
Demand for Opec crude will average 28.39 million barrels per day (bpd) in 2010, Opec said in a monthly report. That is up 300,000 bpd from its previous forecast.
“The world economy now appears to be entering into a new phase, moving from a period of containing the crisis to one of economic recovery,” Opec said in its October Monthly Oil Market Report.
Opec also raised its forecast for global oil demand growth in 2010. It expects world oil use to rise by 700,000 bpd to an average of 84.93 million bpd.
The growth rate is up 200,000 bpd from the previous estimate. Still, Opec only expects demand to expand at about half the rate of IEA.
Oil prices rose on Tuesday, boosted by the prospect of stronger demand and a weaker dollar. US crude was up 90 cents at $74.17 as of 1250 GMT, nearing its 2009 high of $75.00.