OPEC sees 2013 oil demand growth slowing

by **hlk** Wed 11 Jul 2012, 23:29

LONDON: World oil demand growth will slow in 2013 from the already
weak 2012, OPEC said on Wednesday, citing Europe's debt worries, a
faltering U.S. economic recovery and deceleration of growth in emerging
markets.
The Organisation of the Petroleum Exporting Countries
(OPEC), which produces a third of global oil, said daily average demand
for its crude in 2013 would stay below its current production levels as
additional barrels coming out of non-OPEC producers will be enough to
compensate for modest demand growth.
"Besides the euro zone
crisis, geopolitical tensions in the Middle East, the contraction of
manufacturing in the U.S. for the first time since 2010 and
decelerating economic growth in emerging markets have been fuelling
uncertainties regarding global economic growth," OPEC said in a monthly
report.
OPEC left its 2012 world oil demand growth forecast
unchanged at 0.9 million bpd and said growth in 2013 would amount to
0.82 million bpd.
"The fact that the departure of Greece from
the euro zone, with a severe impact on the euro zone economy, still
cannot be ruled out remains a cause of concern," it said.
"Such
an action would provoke a massive capital outflow from the country and
result in a default of its fiscal obligations, with a destabilizing
effect on the euro zone and beyond."
The group's forecasts are
close to those of the U.S. government, which on Tuesday cut its global
oil demand growth estimate for 2013 by 360,000 bpd to 730,000 bpd.
OPEC forecast non-OPEC supply to increase by 0.7 million bpd in 2012 and 0.9 million in 2013.
"U.S.
oil supply is expected to average 10.07 million bpd in 2013, an
increase of 0.37 million bpd over 2012. This increase will be the
highest among all non-OPEC countries and at the highest annual level
since 1986", OPEC said.
OPEC also cited secondary sources as
saying Iranian production was down to 2.963 million bpd in June, the
lowest in more than 20 decades, while Saudi Arabia had ramped output
back to above 10.1 million bpd. - Reuters