OPEC expects decline in oil demand

The Organization of the Petroleum Exporting Countries slashed its estimate for oil demand in the remainder of the year, saying it also expects sales to stagnate next year. In its updated forecast released today, OPEC blames global economic uncertainty for cutting into the world’s appetite for crude. OPEC expects demand to be up by nearly 1 million barrels a day this year over last. However, the increase will still be 180,000 barrels a day less than its previous estimate. For next year, OPEC’s monthly forecast estimates growth in world oil demand will fall to a daily 1.2 million barrels. That would leave global demand for crude at just over 88 million barrels a day for 2012. OPEC, which produces around a third of the world’s crude, says estimated demand for its own product remains unchanged for this year at 29.9 million barrels a day—around 100,000 barrels a day higher than last year. For next year, however, forecast demand for OPEC oil will stagnate at this year’s levels, representing a downward revision of around 100,000 barrels a day, it says. Read more about OPEC’s latest forecast from The Associated Press here.