OPEC lowers oil demand outlook amid gloomy economic forecasts

Feb 9, 2012, 11:31 GMT

Vienna - The Organization of the Petroleum Exporting Countries (OPEC) said Thursday that this year's global oil demand would be lower than previously expected, in line with downward revisions of global economic growth forecasts.

Demand is expected to grow by 1.07 per cent, instead of last month's prediction of 1.21 per cent, the cartel said in its market report.

The average demand outlook for 2012 was lowered by 140,000 barrels per day (bpd) to 88.76 million bpd.

'Worries about the US economy along with EU debt concerns are adding to the uncertainties impacting world oil consumption this year,' OPEC's analysts said.

OPEC not only lowered its expectations for economic growth in Western countries and Japan, but also in the emerging markets of China and India.

The 12-country group raised its total oil output by 56,000 bpd last month to 30.9 million bpd, as Libya continued to bring back its production to pre-civil war levels.

OPEC's oil price rose to 115.18 dollars per barrel on Wednesday, surpassing the 115-mark for the first time since May following a recent attack on a Nigerian pipeline, mounting violence in Syria and concerns over the stand-off between the West and OPEC heavyweight Iran.