World oil demand to rise to 86.6 mbpd in 2011: OPEC

Organisation of the Petroleum Exporting Countries (OPEC) forecasts world oil demand to grow by 1.0 million barrels per day (mbpd) or 1.2 per cent to 86.6 mbpd in 2011 compared to 2010, on sustained global economic recovery projected for the year, although at a slower pace.

In its monthly report released Thursday, OPEC said that the recovery in oil demand would take place in all the quarters, although with more strength in the second half of the year.

According to OPEC, more than 90-per cent of growth is attributed to non-OECD countries, mainly China, India, the Middle East, and Latin America.

For the current year, OPEC keeps its demand growth projections unchanged at 1.0 mbpd at 85.5 mbpd. The demand was higher than expected in the first half, supported by stimulus packages, which is likely to cool down in the second half.

Preliminary estimates indicate that world oil supply averaged 86 mbpd in August, with the 12-nation OPEC contributing 33.9-per cent share.

The oil cartel projects world economic growth in 2010 at 3.9 per cent, same as in its previous report. However, growth for 2011 has been revised slightly down to 3.6 pr cent.

Growth in the US and Japan have been revised downwards due to the diminishing impact of stimulus packages, with 2.6 per cent and 2.5 per cent respectively in 2010, and 2.3 per cent and 1.3 per cent respectively in 2011.