Baku, Azerbaijan, April 25
By Leman Zeynalova – Trend:
For 2018, world oil consumption is projected to increase by 1.5 percent year-on-year, the World Bank (WB) said in its Commodity Markets Outlook.
Consumption in the countries of the Organization of Economic Co-operation and Development (OECD) will rise by 0.3 million barrels per day, while non-OECD consumption will see an increase of 1.2 million barrels per day.
Beyond this year, OECD oil consumption growth is projected by the International Energy Agency (IEA) to slow due to efficiency and environmental policies that will mainly impact transport fuels.
Non-OECD consumption growth is also expected to slow as countries introduce policies to improve urban air quality, according to the report.
In addition, some countries are reducing consumer fuel subsidies and switching to natural gas in the power sector, further limiting oil consumption, said the WB.
“World oil consumption grew strongly in 2017, up more than 1.6 mb/d or 1.6 percent (y/y). Most of the increase was in Asia and the countries of the Organization for Economic Co-operation and Development (OECD). In the first quarter of 2018, world oil consumption is estimated to have risen 1.6 percent (y/y),” said the WB experts.
Consumption growth accelerated to 1.4 percent in OECD members with gains primarily in North America, as cold weather boosted heating oil demand, according to the bank’s estimates.
“Consumption growth in non-OECD countries in the first quarter rose 1.8 percent (y/y), led by China, although its consumption growth slowed amid environmentally motivated production cuts and the late New Year holiday season. India’s consumption, up 11 percent, also rose strongly,” said the report.
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