A Reuters survey of 10 oil organizations and analysts revealed that global oil demand is expected to rise by 1.5 million barrels per day this year, reaching 86.1 million barrels per day — the highest level since 2007.
At the same time, output from non-OPEC (Organization of the Petroleum Exporting Countries) nations is projected to increase by 1.2 million barrels per day.
Higher-than-expected output from non-OPEC countries has contributed to the decline in oil prices — from a 19-month high of over $87 per barrel in early May to around $71 per barrel currently.
The International Energy Agency (IEA) has raised its forecast for non-OPEC oil production by 500,000 barrels per day to 52.3 million barrels per day for this year. Meanwhile, OPEC is expected to increase its output by 400,000 barrels per day, targeting a total of 29.3 million barrels per day.
Emerging Asian economies are expected to drive strong oil demand growth. China alone is forecast to need an additional 700,000 to 800,000 barrels per day in 2010. However, many analysts believe this growth trend will slow in 2011.
(Vfinance 15/7)
