The oil producing group expects that worldwide demand for oil will grow along with accelerating economic growth.
OPEC (Organization of Petroleum Exporting Countries) stated that estimates for next year’s global demand of oil rose by 120,000 bpd (barrels per day). Worldwide consumption is now forecasted to increase 1.17 million bpd from 2010 to 2011.
The group has boosted forecasts for 2011 global oil demand by around 310,000 bpd, reaching 86.95 million barrels per day. Consumption estimates for the current year have been increased to 85.78 million barrels per day, a rise of about 190,000 pbd.
Comments in OPEC’s Monthly Oil Market Report state that OECD consumption has surpassed forecasts due to strong activities in the economy that have been a result of stimulus plans around the globe. The report is created by economists at Opec’s headquarters in Vienna.
The report also noted that crude and oil product inventories are well stocked in both offshore locations and those onshore. This supply is not likely to see significant change.
According to Opec’s report, the inventory situation will keep the market well prepared should oil demands in the coming winter months prove to be even higher than expectations.
Opec’s estimated demand for its own supply of crude oil next year rose by about 400,000 bpd reaching 29.19 million barrels per day. Oil supplied from non-Opec producers is forecasted to decrease by about 70,000 barrels per day for this year and next.
Opec’s twelve member states produce over one third of the global oil supply. In an effort to stabilize the price of oil there have been production limits in place for the past two years.
The target for oil output was left the same at the Opec October 14 meeting, as has been the pattern since a record setting 4.2 million bpd supply curb was seen in December of 2008.
Many of the Opec members have increased supply on an informal basis as recovery in the price and demand for oil has been seen since 2009.
Every Opec member is under the restrictions of oil production targets, with the exception of Iraq. The report stated that the members under these targets saw October production of 26.89 million barrels per day of crude.
Calculations show that those figures represent supply cuts totaling 51 per cent of the promised amounts. That amount is lower than the 55 per cent of promised cuts seen in September.Andrew Reid, Staff Writer, Gulf Jobs Market News