OPEC tweaks higher oil demand forecasts

(MENAFN- The Peninsula) The OPEC cartel tweaked higher its forecasts for world oil demand for 2013 and 2014 on Friday following a stronger-than-expected first half of the year. The Organization of the Petroleum Exporting Countries now expects 2013 world oil demand to average 89.7 million barrels per day (mbd), it said in its new monthly report for August, up from 89.6 mbd last month. For next year, OPEC, whose members pump about 35 percent of the world's supply of crude, expects global oil demand of 90.8 mbd, up slightly from its previous projection of 90.7 mbd. Last year demand was 88.9 mbd. In Europe oil demand is "still in decline mode, though signs of a bottoming-out have begun to show," OPEC said, while for the US economy the report noted "positive developments" in recent months. It noted that Indian oil demand growth has been "rather slow" in the past six months due to a heavy rainy season, lower car sales and a general economic slowdown. In China oil demand "revived" in June. OPEC trimmed its 2013 global economic growth forecast to 2.9 percent from 3.0 percent, mainly due to lower growth estimates for the United States and a slowdown in China, but its 2014 projection was unchanged at 3.5 percent.