Vienna: The Organization of Petroleum Exporting Countries (Opec) on Friday cut its 2008 estimate of growth in world oil demand, as high prices and slower economic growth brake demand in major industrialized countries and the US in particular.
Global oil demand was now projected to grow by 1.28% in 2008, compared with the previous estimate of 1.35%, said Opec in its June monthly report. “World oil demand growth (in 2008) is forecast to grow by 1.1 million barrels per day (bpd) to average 86.88 million bpd, a downward revision of 0.1 million bpd from the previous report,” Opec said.
The slowing world economy and mild winter is weighing on demand in industrialized countries belonging to the Organisation for Economic Coooperation and Development (OECD), Opec said.
At the same time, oil demand remains strong in non-OECD countries. “In the OECD, especially in the US, demand for transport fuel did not grow as expected as a result of slow economic activities and higher oil prices.”
“The slow US economy along with current oil prices will have its effect on oil demand..,” it said. At the same time, China, West Asia, Latin America, and India “are expected to show healthy growth in oil demand for the remainder of the year.”