Baku, Azerbaijan, Nov.13
By Leman Zeynalova - Trend:
World oil demand growth in 2018 is now forecast at 1.50 million barrels per day (mb/d), OPEC said in its Monthly Oil Market Report (MOMR).
Thus, the cartel has revised down the oil demand forecasts by some 40,000 b/d as compared to the last month’s report.
This is despite some positive upward revisions to the region of the Organization of Economic Co-operation and Development (OECD), said OPEC.
Global oil demand is now projected to average 98.79 mb/d in 2018, according to the report.
“OECD oil demand growth was revised higher by 50,000 b/d in 2018, due to better-than-expected data in OECD America. Strong light and middle distillates demand, amid a robust petrochemical sector and healthy development in industrial activities, were the main factors behind the upward adjustments in the US during 3Q18. In the non-OECD region, oil demand growth in 2018 was revised down by around 90 tb/d, given the slowerthan-expected growth in Other Asia, the Middle East and China during 3Q18,” said the cartel.
In Other Asia, easing demand growth in India during 3Q18 due to weather conditions hindering economic activities, in addition to slower-than-expected demand from Indonesia, led to downward revisions of around 10,000 b/d, according to OPEC.
In the Middle East, a downward revision of around 50 tb/d was due to lower demand growth in Saudi Arabia, explains the cartel.
“Oil demand in Saudi Arabia was significantly impacted by efficiency advancements and fuel substitution, in addition to the continuing economic shift weighing on several oil demand-related sectors, particularly transportation. Demand in China was also revised lower by around 30 tb/d, amid signs of easing demand growth in 3Q18,” said the report.
For 2019, projections for world oil demand growth are now pegged at 1.29 mb/d, which is 70,000 b/d lower than last month, specifically in light of the economic adjustments in the non-OECD region and, more generally, on uncertainties regarding the overall global economic development.
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