The OPEC oil cartel today raised its 2012 forecast for growth in global oil demand, but warned of "a great amount of uncertainty" amid economic instability, especially in the euro zone.
"Oil demand will grow in 2012, but not without a great amount of uncertainty," the Organisation of Petroleum Exporting Countries said in its monthly report. Demand for 2012 was forecast at 88.9 million barrels a day (bpd), up slightly from a previous estimate of 88.87 million.
For 2011, OPEC also hiked its demand forecast to 87.84 million barrels a day from the 87.80 million predicted in December. This would represent year-on-year growth of about 1.1 million barrels a day, compared with 0.9 million the previous year, the report noted.
The ongoing euro zone debt crisis remained the biggest threat to the global economy and, as a result, to the oil market, the report said.
"So far it has had little impact on market fundamentals in other regions. However, if the situation were to worsen, the effect on the oil market could be seen not only through a further decline in oil demand in Europe but also with spillover effects on oil demand in the emerging economies," OPEC warned.
The euro zone's troubles, which have undermined car sales on the continent, were also "likely to add to oil price volatility," it said.
The economic situation and high taxes have seen oil consumption in Europe, especially in Britain, France, Germany and Italy, shrink in 2011 and this was set to continue this year, OPEC added.
Generally, oil demand in the OECD region of developed countries was expected to fall in 2012 from the level seen last year. While this would be counter-balanced by a rise in demand in non-OECD nations - of about a million barrels a day that demand would grow "at a slower pace than last year," owing to slower economic growth, OPEC said.
Nigeria, Iran push oil prices higher
Oil prices rose this evening as the market reacted to potential supply disruptions in Nigeria and Iran.
US crude gained 96 cents to $99.66 a barrel. Brent North Sea crude climbed 70 cents to $111.14 in London.
In Africa's biggest oil producer Nigeria, soldiers seized protest sites and dispersed demonstrators after its president watered down a hike in petrol prices to help end an eight-day nationwide strike.
Meanwhile, Iran has starkly warned Gulf states not to make up for any shortfall if its oil exports are cut as a result of new US and EU sanctions.
If Arab neighbours compensate for a looming EU ban on Iranian imports, "we would not consider these actions to be friendly," Iran's representative to OPEC, Mohammad Ali Khatibi, said in remarks published on Sunday.
The US and allied nations accuse Iran of developing an atomic bomb but Tehran insists its nuclear programme is exclusively for peaceful, civilian use.
