OPEC forecasts 1.3% oil demand growth next year
Demand would add 1.26 million barrels per day to reach an average of 97.65 million bpd in 2018, in line with growth rates seen over the past five years, the Organization of the Petroleum Exporting Countries said in a market report.
OPEC's analysts said the increase would mainly be driven by global economic growth, as well as by transportation demand in the United States, China and India. Expansions in the petrochemical industries in the US and China would also increase the global need for oil.
Oil exporters outside the 14-country OPEC group will ramp up their production by nearly 2% to 58.96 million bpd next year, due to expected increases in North America, Brazil and Russia, according to the forecast.
This will leave less space in the market for OPEC oil, the group concluded.
The Middle Eastern, African and Latin American countries that make up OPEC pumped 32.6 million barrels per day in June, accounting for more than a third of global supplies.
A coalition of 24 OPEC and non-OPEC countries including Russia have been throttling their output since January to prop up prices. ■