OPEC today cut its estimate for world oil demand over the next two decades, predicting that soaring oil prices would compel consumer countries to be more efficient in their use of the precious commodity.
In its annual World Oil Outlook, the Organisation of Petroleum Exporting Countries, forecast that world oil demand would amount to 113.3 million barrels per day (bpd) in 2030. That is lower than the cartel's previous forecast of 117.6 million bpd published a year ago.
Meanwhile, prices rose to near $138 a barrel due to escalating tensions between Iran and the West and threats of an oil workers' strike at Brazil's Petrobras next week. Gains were limited, however, by International Energy Agency forecasts for a more comfortable supply outlook next year.
US crude rose $1.77 to $137.82 a barrel, while London Brent crude was up $1.63 at $138.21.
The threatened five-day strike at Petrobras strike would affect all 42 Campos basin offshore platforms, which account for more than 80% of Brazil's output.
Meanwhile, Iran tested more missiles in the Gulf today, while the US pledged to defend its allies. Iran had test-fired nine missiles on Wednesday, which it said included ones that could hit Israel and US bases.
Concern over Iran has mounted after a big Israeli military exercise last month. The West fears Iran wants to master technology to build nuclear weapons.
