The latest monthly oil report from the IEA has suggested oil demand for 2011 will rise to nearly 88 million barrels per day, while revising up its prediction for global oil demand for 2010.
The IEA predicts global oil demand is now projected at 86.6 million bpd in 2010 and 87.9 million bpd in 2011, suggesting increments of 1.9 million bpd and 1.3 million bpd, respectively.
“Crude oil prices have generally been range bound in a $70 to $85 groove since last October, OPEC production has been anchored close to 29 million barrels per day since last October, OPEC spare capacity has exceeded 5 million barrels per day since early 2009, and OECD industry stocks have been oscillating around 60 days for most of the last 18 months.” the IEA noted in its September Oil Market Report, released last Friday.
Crude Oil Supply Issues in Future?
As the world consumes more oil, there will be a greater burden on supplies of crude oil from OPEC member countries than estimated, the IEA said. OPEC will need to supply 29.2 million barrels a day in 2011 to balance world supply and demand, up from the 29.1 million barrels a day projected last month.
OPEC Members Countries Remain Cautious
Meanwhile, OPEC member countries last Thursday kept its oil demand forecast broadly unchanged, warning of weakening demand amid signs of an economic slowdown in industrialised nations.
In its monthly report, OPEC said world oil demand growth in 2010 would remain at one million barrels a day, and echoed concerns by the OECD that a slowdown in global economic activity would be steeper than anticipated.