World oil demand will rise slightly more than expected in 2014, the
The Opec, in a monthly report, said global demand will rise by 1.09 million barrels per day (mbpd) this year, up about 40,000 bpd from its previous forecast. The group, which pumps a third of the world's oil, also sees potential for further rises.
"Given the improvement in OECD oil demand, the likelihood for upward adjustments for world oil demand growth in 2014 is currently higher than existing projections," said the report by economists at Opec's
Opec's report comes a day after the US government's
While the bulk of the growth in global oil demand continues to come from
"The potential of the forecast for OECD oil demand leans to the upside as the improving economic conditions in the US and
"For the non-OECD countries, risks are skewed to the downside due to fiscal and monetary issues."
According to secondary sources cited by the report, Opec raised its own output to 29.71 mbpd in January, as a partial recovery in Libyan shipments – disrupted for months by unrest – was offset by cutbacks in top exporter Saudi Arabia.
But the stronger global demand outlook is not translating yet into higher demand for Opec oil, as rising supplies including of US shale oil are eroding its market share in 2014. Opec raised its estimate of the amount of crude non-member countries are expected to produce this year to 54.14 mbpd, up about 50,000 bpd from the previous estimate.
As a result, Opec expects demand for the crude pumped by its 12 members to average 29.60 mbpd, virtually unchanged and suggesting inventories will build up should the group keep pumping at January's rate.
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