Vienna (AFP) April 12, 2011
The Organisation of Petroleum Exporting Countries (OPEC) raised Tuesday its growth forecast for world oil demand in 2011, expecting little import from recent events in Japan and Libya.
World oil demand will now grow by 1.39 million barrels per day (bpd), or 1.61 percent, to 87.94 million bpd, the cartel said in its latest monthly report.
In its previous report, OPEC put this year's average daily demand at 87.74 million bpd.
For 2010, demand was put at 86.55 million barrels per day -- up 2.0 million bpd -- it said, revising its estimate upwards slightly on the back of higher-than-expected winter consumption.
Last month's earthquake and tsunami in Japan and events unfolding in OPEC-member Libya would have little impact on the global demand figure for the year, OPEC forecast.
Japan's disaster "is expected to affect oil demand only marginally."
While the country's consumption had dropped as the transportation sector slowed and other economic sectors ground to a halt, "this is likely to be offset later in the year as the country substitutes some of its shut-in nuclear power capacity with crude-burning power generation," the cartel predicted.
"Furthermore, rebuilding operations later on will call for increased energy use."
Meanwhile, an 80-percent cut in production in Libya due to the ongoing conflict -- to just 250,000-300,000 bpd from a previous 1.6 million bpd -- was being compensated for by other OPEC producers.
"Since the supply disruption in Libya, OPEC Members have accommodated most of the shortfall in production, ensuring that the market is well supplied," the organisation said.
"The market can be assured that in the months ahead, the Organisation will continue its longstanding role of supporting oil market stability," OPEC said.
Earlier Tuesday, the International Energy Agency warned that soaring oil prices were beginning to hit demand.
"There are real risks that a sustained $100 dollars a barrel-plus price environment will prove incompatible with the currently expected pace of economic recovery," the IEA said in its monthly report.
These prices were "out of step with the realities of supply and demand," OPEC agreed.
"In terms of fundamentals, the recent events alone do not justify the current high price levels.
"Instead, these represent a sharp increase in the risk premium, reflecting fears of a shortage in the market in the coming quarters," OPEC said.
On Tuesday, Brent North Sea crude for delivery in May rose 48 cents to $124.46 a barrel in afternoon London trade.
New York's main contract, light sweet crude for delivery in May, meanwhile fell 62 cents to $109.30.
Share This Article With Planet Earth
Powering The World in the 21st Century at Energy-Daily.com
Transocean claims record sea depth for oil drilling
Zurich (AFP) April 12, 2011
Offshore oil drilling group Transocean claimed Tuesday that it had a set a world record for deep water drilling at an ocean depth of 3,107 metres (10,194 feet) off the coast of India. The depth was achieved by the ultra-deepwater drillship Dhirubhai Deepwater KG2, surpassing the previous record of 10,011 feet, also set by Transocean in 2003 in the Gulf of Mexico, the group said in a statemen ... read more
Japan's post-disaster economy faces electric shock|
Japan sets power-saving targets
Mekong Countries To Convene Additional Meeting On Xayaburi Project
Facebook makes data centers greener and cheaper
OPEC raises 2011 world oil demand growth forecast
Turkish gas ambitions derail EU pipelines
Shale gas as dirty as oil, coal for warming: study
Outside View: Gas prices and consumers
Manitoba wind farm comes online
Alstom Announces Commercial Operation Of First North American Wind Farms
Vestas unveils new offshore turbine
US hopes to resolve China wind turbine rift
S.Africa to invest $3.7 bln in green energy: minister
Sacramento Welcomes 12,600 Solar Panels
Legends Business Group Adds Solar Charger Controllers
DOE Finalizes Large Loan Guarantee For BrightSource Energy
Japan utility suspends nuclear expansion after crisis
Researchers Improve Path To Producing Uranium Compounds For Advanced Nuclear Fuels
Switzerland says considering nuclear shutdown
Britain's plans for nuclear waste on hold
Nanoparticles Increase Biofuel
Economics, Physics Are Roadblocks For Mass-Scale Algae Biodiesel Production
Advance Toward Making Biodegradable Plastics From Waste Chicken Features
Short Rotation Energy Crops Could Help Meet UK's Renewable Energy Targets
What Future for Chang'e-2
China setting up new rocket production base
China's Tiangong-1 To Be Launched By Modified Long March II-F Rocket
China Expects To Launch Fifth Lunar Probe Chang'e-5 In 2017
Climate Change Poses Major Risks For Unprepared Cities
Rich, poor nations feud at UN climate talks
Number Of Days Of Rain In Iberian Peninsula Has Increased Since 1903
Climate Beliefs Shift With Weather
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2010 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement|