U.S. bank lowers forecast for growth in world oil demand
Azerbaijan, Baku, Aug. 16 / Trend A.Badalova /
The growth in world oil demand in the second half of 2011 will be around 1.1-1.2 million barrels per day, the U.S. bank JP Morgan's report reads.
The bank had previously forecasted the figure at 2million bpd.
The decrease is associated with lower forecasts for the economic growth.
"Growth in demand will continue to be under the influence of emerging markets, particularly China and Asia. The main drivers of growth from the Organization for Economic Cooperation and Development are the U.S., Mexico, and recently - Japan, which increased the use of oil in electricity production," the bank's analysts say.
The bank reported that world oil demand was 88.8 million barrels per day in the first quarter of 2011.
According to the U.S. Energy Information Administration (EIA) world oil demand was 87.38 million barrels per day in the first half of 2011, which at 1.56 million barrels per day above the figure in the same period of 2010.
JP Morgan believes concerns over the global economy and supply of the world oil market will cause a reaction from OPEC, which has long demonstrated calmness to what is happening around.
"We believe OPEC's reaction would be more rapid this time than in recession during the second half of 2008, when oil prices fell by almost two-thirds of the period of late September-early December," the report reads.
The bank reported that falling prices for North Sea Brent crude to $ 90 per barrel will be a cause for OPEC to take the necessary steps.
According to JP Morgan's estimates, oil production by OPEC amounted to 29.761 million bpd in July compared to 29.413 million bpd in June. Officially established quota of oil production was 24.845 million bpd.
