Latest OPEC report says 2010 oil forecast to be trimmed

In its latest monthly report, OPEC trimmed its forecast for global oil consumption growth in 2010 to 800,000 barrels a day, OPEC also warned that the slow pace of global economic recovery in 2010 would lead to a subdued improvement in oil demand in 2010.

OPEC’s view suggested significantly more pessimism among the cartel’s members on the outlook for demand than projections released on Wednesday by the US government or the latest forecasts from the IEA.

The energy watchdog of the western world had forecast a rise of 1.44m barrels a day in worldwide demand for oil. On Wednesday, the Energy Information Administration, the statistical arm of the US Department of Energy, revised its forecast for 2010 global demand growth up 120,000 b/d to 1.2m b/d.

OPEC’s view is also at odds with the forecasts of some of the biggest banks on Wall Street, which expect a gathering recovery in energy consumption to push oil prices close to $100 a barrel by the end of the year or in early 2011.

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