Baku, Azerbaijan, July 12
By Elena Kosolapova – Trend:
OPEC expect world oil demand growth to reach 1.26 million barrels per day in 2018, slightly less than in the current year and broadly in line with the average growth seen over the last five years, the cartel said in its monthly oil market report published July 12.
Total world oil demand will hit 97.65 million barrels per day in 2018, according to OPEC projections.
OPEC did not provide forecast for 2018 in its previous monthly oil market report published in June.
Factors driving global oil consumption in 2018 are expected to be the ongoing growth in the world economy; road transportation demand propelled by steady vehicle sales in the US, China and India; capacity additions and expansions in the petrochemical sector, particularly in the US; and new capacities of propane dehydrogenation plants in China.
Uncertainties to the 2018 oil demand forecast include the higher level of substitution towards other fuels, efficiency gains, subsidy reductions, and digitalization and technological developments.
OECD (Organisation for Economic Co-operation and Development )consumption is foreseen to rise by around 0.19 million barrels per day in 2018. Non-OECD demand is expected to increase by 1.07 million barrels per day, with China and India as the major contributors.
World oil demand for 2017 was unchanged from the previous month’s report. Total world oil demand growth is expected at 1.27 million barrels per day, with total consumption at around 96.4 million barrels per day.
In 2018, world oil demand is projected to grow at a similar pace to the current year, rising by 1.26 million barrels per day to average 97.6 million barrels per day.
Non-OECD countries are projected to lead oil demand growth with 1.06 million barrels per day, while OECD nations are anticipated to increase by 0.20 million barrels per day.
Follow the author on Twitter:@E_Kosolapova