OPEC released it’s monthly oil report yesterday which predicts and increase of 1m barrels per day for 2011, however OPEC also warns of weakening oil demand amid signs of a worldwide economic slowdown.
OPEC left its forecast for world oil demand broadly unchanged for 2010. In its monthly report, OPEC said that “global oil demand was higher than expected in the first half of 2010, supported by stimulus packages in key consuming countries. With these winding down, demand in the second half is expected to move lower,” it added.
In 2011, world oil demand growth is expected to continue at the current level of 1 million barrels a day, unchanged from the last assessment, OPEC said.
OPEC said crude oil demand in western Europe would fall by 260,000 barrels a day in the third quarter of 2010 compared with the same period in 2009 and by 150,000 barrels a day in the fourth quarter.
OPEC, whose member countries pump about 40% of the oil consumed every day worldwide, tend to have a more bearish view than the OECD’s energy watchdog, the IEA. The IEA’s report is due out later today.