The Organsiation of Petroleum Exporting Countries has trimmed its forecast for global oil demand growth this and next year due to expectations for lower economic momentum, the cartel said today.
In its latest monthly report, OPEC estimated global demand of 2.5 million barrels per day this year, cutting its forecast by 120,000 bpd. At that lower rate of growth, total demand was expected to stand at 81.74 million bpd.
'The world oil demand estimate for the current year has been slightly adjusted downwards to account for the slowdown in Chinese consumption in the second half of the year as well as expected lower apparent demand in the former Soviet Union due to the slower pace of economic activity,' OPEC said.
It also lowered it forecast for 2005 oil demand growth by 180,000 bpd to 1.49 million bpd. At that rate of growth, total oil demand was seen at 83.33 million bpd next year.
The revision was based on an expectation for slower global economic growth, which OPEC now forecasts at 4.03% next year compared with an estimate of 4.14% previously.
However, it warned that Chinese growth remained uncertain because it was too early to determine how succesful the Chinese government would be in slowing the booming oil-thirsty economy in the face of pressure from regional governments that are more interested in creating jobs and boosting investment.
The International Energy Agency, which represents big energy consuming countries, forecast last week that global oil demand would total 82.4 million bpd this year and 83.8 million bpd next year.
